Thursday’s total option volume of 13.0 million contracts resulted in net open interest growth of 2.06 million calls and 2.13 million puts. J C Penney Company Inc (JCP), Bank of America Corporation (BAC), Ford Motor Company (F) and Dell Inc (DELL) saw the greatest growth. Top five new positions opened include 72k Ford Motor Company (F) Jan-14 15 calls, 60k J C Penney Company Inc (JCP) May-13 12 puts, 42k TD Ameritrade Holding Corporation (AMTD) Aug-13 23 calls, 35k Bank of America Corporation (BAC) Jan-14 10 puts and 30k J C Penney Company Inc (JCP) May-13 16 puts.
There was 20x the normal options flow in TD Ameritrade (AMTD) yesterday with roughly 42,000 AMTD Aug 23 calls being bought. The stock is currently trading at about $19 per share. The company is presenting on March 5 at the Raymond James conference. The next earnings release is scheduled for April 16. The company beat earnings and revenue estimates when it last reported on January 22.
J C Penny shares were the 5th largest loser among single stocks yesterday, down $3.44 (16.3%) to 17.72 after disappointing earnings. Put volume yesterday set an all-time record with nearly 240,000 contracts trading and puts dominating calls 3:1. The May 16-12 1×2 put spread was the largest block trade, with the investor paying 68 cents to buy 1 and sell 2 a total of 30,000 x 60,000. Interestingly, one very large trade put on a week ago was a similar bearish ratio spread, the April 17-20 2×1 for 30cents – still open and up about 40% in value as shares have come toward the short strike.