Friday’s total option volume of 14.7 million contracts resulted in net open interest growth of 1.95 million calls and 2.83 million puts. Pfizer Inc (PFE), Facebook Inc (FB), Bank of America Corporation (BAC) and Zoetis Inc (ZTS) saw the greatest growth. Top five new positions opened include 63k Pfizer Inc (PFE) Jul-13 35 calls, 62k Pfizer Inc (PFE) Jul-13 35 puts, 27k Zoetis Inc (ZTS) Jul-13 40 calls, 24k Zoetis Inc (ZTS) Jul-13 40 puts and 21k Facebook Inc (FB) 6/7 weekly 24.5 calls.
Traders usually don’t like going into long weekends net long. The news flow over the weekend was quiet so the buy-the-dip trade is what is driving markets this morning. With interest rates low, quantitative easing in full effect and benign news flow, there is little to stand in the way of asset price re-flation.
While the total number of options traded was not notable, the following trades met the 1,000 contract threshold and were 15x, 20x, 120x and 122x normal volume all with a bullish directional bias respectively – Exide Technologies (XIDE), Murphy Oil (MUR), DTS Inc. (DTSI) and Stewart Enterprises (STEI). XIDE reports earnings on June 6. MUR recently announced an acceleration of a $250 million share repurchase program. DTSI is speaking at investor conferences on May 29 and June 12. STEI reports earnings on June 5. On April 3, STEI increased its dividend by 12.5%.