Monday’s total option volume of 13.0 million contracts resulted in net open interest growth of 2.49 million calls and 1.90 million puts.  Facebook Inc (FB), Apple Inc (AAPL), Microsoft Corp (MSFT) and Cisco Systems Inc (CSCO) saw the greatest growth. Top five new positions opened include 30k Huntsman Corporation (HUN) Jun-13 19 calls, 29k Microsoft Corp (MSFT) Jul-13 32 calls, 22k Clearwire Corporation (CLWR) Jun-13 4 calls, 20k Barrick Gold Corporation (ABX) Oct-13 15 puts and 20k Bed Bath and Beyond Inc (BBBY) Jun-13 72.5 calls.

Options activity is very light.  So is equity trading activity.  Yesterday’s all-time closing high for the S&P 500 came on weak volume at the NYSE of just 599 million shares.  Half of the largest options trades were tied to earnings events.  On the bearish side, the largest trade relative to open interest was on Conceptus Inc. (CPTS) which was acquired for a 20% premium.

The number of stocks trading above their 10-day moving average is now roughly 75%.  The market is near-term overbought.  The longer-term trend remains bullish.  We recommend putting new money to work on pullbacks.  Our market sentiment indicator is roughly 56% today and climbing.

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