As of today the top ten option contracts traded were:

  1. S&P 500 SPDR (NYSE:SPY) March 85 Put Options
  2. Citigroup (NYSE:C) January 2011 5 Call Options
  3. S&P 500 SPDR December 82 Put Options
  4. S&P 500 SPDR December 95 Put Options
  5. S&P 500 SPDR March 100 Put Options
  6. Procter & Gamble (NYSE:PG) January 45 Call Options
  7. Consumer Staples Select Sector SPDR (NYSE:XLP) January 27 Call Options
  8. Citigroup November 5 Call Options
  9. S&P 500 SPDR January 107 Put Options
  10. S&P 500 SPDR November 107 Put Options

Judging by today’s options activity it looks as if many option traders have turned quite bearish going into the next 6 months. We see many Deep Out Of the Money (DOOM) put options being traded for the S&P ETF, and a bullish bet being taken on the consumer staples ETF. At market open I closed all of the put options sold yesterday (CAT and TXN) including the 180 strike put options on Apple. I then looked ahead to after hours earnings reports and sold puts on Yahoo (YHOO), SanDisk (SNDK), and Walter Energy (WLT). All three companies look to be trading higher in after hours. I will look to take quick profits tomorrow and close all three positions. One stock on my radar tomorrow is Corning Inc. (GLW). I am looking to get between 55 and 65 per option contract for the November 15 put options. Happy trading!