Wednesday’s total option volume of 15.7 million contracts resulted in net open interest growth of 2.58 million calls and 2.18 million puts. Yahoo Inc (YHOO), Apple Inc (AAPL), J C Penney Company Inc (JCP) and Bank of America Corporation (BAC) saw the greatest growth. Top five new positions opened include 32k Yahoo Inc (YHOO) Oct-13 29 calls, 30k Yahoo Inc (YHOO) Jan-14 30 calls, 20k US Airways Group Inc (LCC) Mar-13 13 puts, 19k Research In Motion Ltd (BBRY) Mar-13 13 puts and 19k Hewlett Packard Co (HPQ) May-13 22 calls.
As we know, there has been tremendous bullish flow in TD Ameritrade (AMTD) over the past week. Yesterday, there was unusual bullish flow detected in Charles Schwab Corporation (SCHW) with 18223 calls trading, or 9x the recent average daily call volume in the name. Shares near $17.50 with ATMIV lifting by 1.73 point and 86% of yesterday’s call premium trading offer side. Most of the buying action was concentrated in the April 18 calls with over 10,000 contracts bought opening.
In low-cost Brazilian airline company Gol Linhas Aereas Inteligentes (GOL), there was a buyer of 5,500 July 7.5 calls. This was 111x normal volume traded.
In Oneok (OKE) an investor bought 16,000 Oct 50 calls. This was 86x normal volume. The company presented at the Barclays Investment Grade Energy and Pipeline Conference yesterday. The stock has traded down from about $48 to $45 recently and this appears to be an attractive entry point.