Tuesday’s total option volume of 17.5 million contracts resulted in net open interest growth of 2.95 million calls and 3.11 million puts. Bank of America Corporation (BAC), Apple Inc (AAPL), Microsoft Corp (MSFT) and Micron Technology Inc (MU) saw the greatest growth. Top five new positions opened include 30k Sandridge Energy Inc (SD) May-13 5 puts, 28k Bank of America Corporation (BAC) 3/22 weekly 12.5 puts, 26k Microsoft Corp (MSFT) May-13 30 calls, 22k Micron Technology Inc (MU) Apr-13 10 calls and 22k Talisman Energy Inc (TLM) Jul-13 13 calls.
In Dollar General (DG), 15,000 calls were purchased yesterday. Over 10,000 Apr 52.5 calls were bought. As a reminder, we recommended purchase of the DG may 52.5 calls for $0.90. DG is up 4% this morning.
In Altera (ALTR), there was a buyer of 10,000 June 34 calls. Competitor Lattice Semiconductor (LSCC) provided upside guidance yesterday.
In Keryx Biopharmaceuticals (KERX), there was a buyer of 10,000 Jun 4.5 puts. In late January, the company announced its Zerenex Phase III data exceeded expectations. The stock jumped from about $3 to $10 and has since settled back at around $7.30.