Wednesday’s total option volume of 18.9 million contracts resulted in net open interest growth of 1.70 million calls and 2.76 million puts. Microsoft (MSFT), MetroPCS Communications (PCS), Barrick Gold (ABX) and Bank of America (BAC) saw the greatest growth. Top five new positions opened include 72k Microsoft (MSFT) Apr-13 30 puts, 35k MetroPCS Communications (PCS) May-13 13 calls, 34k MetroPCS Communications (PCS) May-13 12 calls, 32k TD Ameritrade (AMTD) Jan-14 26.5 calls and 23k MBIA (MBI) Aug-13 13 calls.
After MSFT spiked 5.3% higher the past two days, some market participants bought puts in Mr. Softy. Total option volume in MSFT was 6.4 times normal, Although the Apr 30 puts was the most active line, there was plenty of bullish call buying with 48k MSFT Apr 30 calls and 25k MSFT Jun 31 calls traded. The company will report earnings that afternoon of Apr 18, which is the Thursday before expiration Friday.
In AMTD, 32K Jan 26.50 calls traded to open, 9 times the normal volume. The activity is similar to the activity seen last month that created big open interest in the Aug 23 calls. Open interest in the Aug 23 calls is 108k. The company is scheduled to report Apr 16 before the open. 3800 May 20.50 calls also traded.
In Coca Cola Enterprises (CCE), there was an opening buyer of 1250 May 39 calls. The volume was 6 times normal.
In VCA Antech (WOOF), there was an opening buyer of 1647 May 25 calls. The volume was 10 times normal.
In Analog Devices (ADI), there was an opening buyer of 2725 Apr 45 calls. The volume was 5 times normal.
In Leggett and Platt (LEG), there was a buyer of 2196 May 30 puts. The volume was 5 times normal.
In NCR (NCR), there was a buyer of 2107 Apr 27 puts. The volume was 5 times normal.