Thursday’s total option volume of 13.6 million contracts resulted in net open interest growth of 2.55 million calls and 2.46 million puts. Oracle Corp (ORCL), Starwood Hotels and Resorts Worldwide Inc (HOT), Micron Technology Inc (MU) and Bank of America Corporation (BAC) saw the greatest growth. Top five new positions opened include 60k Starwood Hotels and Resorts Worldwide Inc (HOT) Jan-14 70 calls, 60k Starwood Hotels and Resorts Worldwide Inc (HOT) May-13 65 calls, 24k Morgan Stanley (MS) 3/28 weekly 21.5 puts, 24k Bank of America Corporation (BAC) 3/28 weekly 12.5 puts and 22k Micron Technology Inc (MU) May-13 10 calls.
Semiconductor capital equipment maker KLA-Tencor Corp (KLAC) has dropped from the high $50s to the low $50s in the past two months. Yesterday, there was a buyer of 5,500 April 55 calls. This bullish flow was 5x normal. The company’s earnings report is expected on April 25 which is after options expiration.
Options in Lexington Corporate Properties Trust (LXP) almost never trade. Yesterday, there was a buyer of 1,000 August 12.5 calls. This was 113x normal volume. The stock is trading at 52-week highs and announced earlier this week it is redeeming all of its outstanding 6.2 million shares of 7.55% Series D preferred stock.
Two days ago, Dish Network (DISH) jumped from $34.50 to roughly $36.50 on no major headline news. Today, there is an opening buyer of almost 7,000 April 34 puts. On February 20, the stock broke down on disappointing earnings.