As of today the top ten most active stock option contracts traded were:

  1. BP (BP) November 55 Call Options
  2. BP January 50 Call Options
  3. BP January 40 Call Options
  4. Eli Lilly (LLY) January 30 Call Options
  5. S&P 500 SPDR (SPY) November 107 Put Options
  6. BP January 45 Call Options
  7. Bank of America (BAC) November 16 Call Options
  8. S&P 500 SPDR November 110 Call Options
  9. S&P 500 SPDR November 109 Call Options
  10. Citigroup (C) December 5 Call Options

There was nothing too unusual in today’s most active option activity. 5 of the top 6 were all dividend plays and there was nothing too bearish or bullish in the S&P 500 SPDR options. We have been seeing bullish activity in Bank of America options lately, and the traders have been right thus far. I would like to see the S&P 500 get and close above 1,100 to take out this emerging head and shoulder pattern (see chart below).

I do believe we are headed higher short term. I sold 2 to 1 ratio put spreads on (PCLN) today for the 175/155 strikes, and as of after hours it looks like it will be profitable. With the money received I purchased several December 220 call option contracts which will move higher tomorrow as well based on extended hours activity. I was not able to get into the Perfect World (PWRD) trade, but AOL finance must have the reporting date wrong as it still says they report after the bell today, however I noticed a headline today at OptionsXpress that Perfect World will be reporting on November 16. Happy trading!