Monday’s total option volume of 16.6 million contracts resulted in net open interest growth of 3.72 million calls and 3.36 million puts. Apple Inc (AAPL), Intel Corporation (INTC), Microsoft Corp (MSFT) and Groupon Inc (GRPN) saw the greatest growth. Top five new positions opened include 50k Groupon Inc (GRPN) Jan-14 10 calls, 25k Liberty Global Inc (LBTYA) Oct-13 85 calls, 22k NetApp Inc (NTAP) Jul-13 40 calls, 22k Alcoa Inc (AA) Jan-15 10 calls and 21k Intel Corporation (INTC) Aug-13 25 calls.
Hanwha SolarOne Co (HSOL) has almost doubled in the past two months albeit from a price of roughly $0.85. Yesterday, the stock touched a 52 week high. In the options market, 52x the normal volume traded with roughly 1,000 June 1 and 1,400 June 2 calls being bought to open. When you buy an option on a $1.60 stock, it is like buying an option on an option. These types of situations can be highly volatile which can be profitable when you are starting at such a low base.
JA Solar (JASO) also saw bullish flow yesterday with 31x the recent average daily call volume trading in the name. JASO reported better earnings, revenues and shipments yesterday. The stock has risen from about $3.50 to nearly $10.00 in the past two months. Yesterday, the stock was up about 70%.
Yingli Green Energy Holding (YGE) is a Chinese solar company that had 10x the normal volume trade yesterday. The activity was concentrated in the June 3 calls. Relative to JASO and HSOL, it looks like YGE has room to run.