Tuesday’s total option volume of 14.7 million contracts resulted in net open interest growth of 1.48 million calls and 1.47 billion puts. American International Group Inc Corp (AIG), Apple Inc (AAPL), Sprint Nextel Corporation (S) and Research In Motion Ltd (RIMM) saw the greatest growth. Three of the top five largest open interest changes yesterday were closing trades. Nexen (NXY) -53k Dec 25 calls, Marathon Oil (MRO) -42k Dec 29 puts and Oracle (ORCL) -21K Dec 30 calls. The two opening trades were Electronic Arts (EA) 27K Mar 17 calls and General Electric (GE) 20K Dec 22 calls. The options market is beginning to close down for the year.
The Electronics Arts (EA) options volume was 9x normal. All of the 27K Mar 17 contracts opened. Fidelity Investments recently established a greater than 10% position in EA. In Lear Corp (LEA), there was 25x normal volume with all of the buying concentrated in the Jun 50 calls 5,000x. Two days ago, the company announced it will be opening a new plant that will create roughly 700 jobs.