Yesterday’s total market volume of 22.5million option contracts is the highest day of 2009, and Citi led the way with a frenzied 2.71 million contracts, 7x normal for the name. Calls dominated the flow with June 2.5s the most active strike, with 326,000 trading. Call OI in Citi has grown from 3.5 to 5.1million contracts over the past six sessions, as shares have lifted from $1.50 to above $3.
About the Author (Author Profile)
Henry Schwartz is the president of Trade Alert LLC, a provider of real-time options analysis tools to leading Wall Street firms. His systems analyze hundreds of thousands of transactions per second to help professionals identify and interpret market activity in real time, supporting informed trading decisions and intelligent idea generation. He has held institutional trading and management roles with Bank of America, Bear Stearns, Salomon Brothers and the Hull Group, and made markets on the CBOE and AMEX floors in the US, and EUREX and MONEP overseas. Prior to founding Trade Alert, he led the electronic market-making group at Bank of America coincident with the launch of the International Securities Exchange. He received his bachelor’s degree in Economics from the University of California, San Diego and his MBA from NYU’s Stern School of Business.