Tuesday’s total option volume of 16.1 million contracts resulted in net open interest growth of 2.07 million calls and 2.56 million puts. Bank of America Corporation (BAC), Dell Inc (DELL), Apple Inc (AAPL) and Best Buy Company (BBY) saw the greatest growth. Top five new positions opened include 35k Best Buy Company (BBY) Jun-13 18 calls, 25k News Corp New (NWSA) Jan-14 32 calls, 25k News Corp New (NWSA) Jan-14 35 calls, 22k Bank of America Corporation (BAC) Aug-13 9 puts and 21k BP Plc (BP) Apr-13 44 calls.
NQ Mobile (NQ) is trading at about $6.87. Yesterday, with the stock at about this level, there was a buyer of 2,000 June 5 calls 2,000x. This represents 55x normal volume and it is rare to see such deep in-the-money call buying. Usually, because the delta is so high, in-the-money call buying equates to high conviction on the part of the investor.
In Ecolab (ECL), there was a buyer of 2,200 Apr 70 puts opening. The stock is at a 52 week high and is right at double-top resistance. The company reports earnings on Feb 26. On Jan 8, ECL reaffirmed earnings guidance.
The S&P 500 has been up for six straight weeks. Going back to 1928, there have been 63 six-week winning streaks so the current winning stretch is not particularly unusual. The longest winning streak since 1970 was 12 weeks.