The options flow remains slightly bullish with the ratio of bullish to bearish flow being 32% bullish, 38% neutral and 30% bearish. The five largest open interest changes yesterday were a call seller in Bank of America (BAC) Jan 10 calls which declined by 38k, Geo Group (GEO) Dec 12.5 puts which increased by 35k, Phillips 66 (PSX) Jan 60 calls increased 26k, Nexen Inc. (NXY) Dec 25 calls increased 25k and Cisco (CSCO) Jan 20 calls increased 19k.
In Kosmos Energy (KOS), there was a buyer of 5,000 Apr 12.5 calls. This was 23x normal volume. The stock has been highlighted by Bloomberg as an M&A target. In Charles Schwab (SCHW), there was a buyer of 3,000 Dec 13 calls. These calls are in-the-money. In Marathon Oil (MRO), there was a buyer of 43,000 Dec 29 puts to close a short put position. This trade followed news that the CEO resigned. The options investor has lost confidence that the stock will not trade down through the 29 strike price.