Monday’s total option volume of 19.1 million contracts resulted in net open interest growth of 2.76 million calls and 3.54 million puts. Bank of America Corporation (BAC), American International Group Inc Corp (AIG), Apple Inc (AAPL) and Morgan Stanley (MS) saw the greatest growth. Top five new positions opened include 33k Sandridge Energy Inc (SD) Apr-13 5 puts, 25k Novartis AG (NVS) Mar-13 75 calls, 25k Novartis AG (NVS) Mar-13 75 puts, 21k Morgan Stanley (MS) May-13 22 puts and 21k Morgan Stanley (MS) Apr-13 17 puts.
Yesterday, Texas Instruments (TXN) touched a new 52 week high while the broader market suffered its worst one day sell-off of the year. Institutional options buyers bought 35,000 Jan 35 calls which was nearly 5x normal volume. The company will provide its first quarter mid-quarter update on March 7.
In Dollar General (DG), there was a buyer of 10,000 April 46 calls. The calls were bought in a single transaction. The company is expected to report earnings on March 21. Peer company Dollar Tree (DLTR) reports earnings on Feb 27.
Radian Group (RDN) is near its 52 week highs. Yesterday, there was a buyer of the Aug 8 in-the-money calls 10,000x. Today it announced a public offering of up to 30 million shares of common stock and $200 million aggregate principal amount of its convertible senior notes due 2019. The stock is down about 2% on the offering news.