Overall options flow continued to have a slightly bearish bias yesterday with 32% of the flow being bearish, 29% bullish and 39% neutral. The top five changes in open interest were Facebook (FB) Dec 27 puts and Mar 29 calls, Bank of America (BAC) Mar 10 calls, Microsoft (MSFT) Apr 27 calls and Cisco (CSCO) Feb 20 calls. Facebook has a lockup expiration of 140 million shares on December 12. The company then reports earnings on Feb 7. The options volume on FB was 2x normal levels. It appears the options market is expected a pullback on the options expiration and then a rebound on earnings.
In Southwestern Energy Corp (SWN), there was a buyer of Dec 36, 37 and 38 calls for a total of 10,000 contracts. The stock has been trading in a range of 34 to 36.50 for the past several months. In LeapFrog Enterprises (LF), an institutional player bought to open roughly 10K Mar 7.50 puts for $0.65 with the stock $9.06. The stock appears to have rolled over.