Thursday’s total option volume of 14.6 million contracts resulted in net open interest growth of 2.11 million calls and 2.57 million puts. Elan (ELN), JP Morgan (JPM), Bank of America (BAC) and Intel (INTC) saw the greatest growth. Top five new positions opened include 50k Elan (ELN) Jan-14 10 puts, 27k JP Morgan (JPM) Mar-13 47 puts, 25k Elan (ELN) Jan-14 10 calls, 25k Elan (ELN) Jan-14 12 calls and 21k Talisman Energy (TLM) Jul-13 15 calls.
In 2001, Elan (ELN) traded as high as $65. In 2008, the annual high was $38. On Wednesday, the stock traded at $9.45. With the recent plunge, some option traders are playing for a bounce while others sold vol expecting the stock to be range bound.
Playing earnings yesterday after the close that got it right were bullish call buyers in FleetCor Technologies (FLT), stock +12.5% and in Activision Blizzard (ATVI), stock +9%. In FLT, market participants bought to open FLT Aug 65 calls and ATVI Feb 12 and 13 calls.
Other unusual activity was seen in Linn Energy (LINE), where options were traded 2.5 times normal with call buyers in the LINE Apr 44 calls 10,000 times. In Southwest Airlines (LUV), traders bought near dated options, 3,750 LUV Feb 12 calls.