As of today September 14, 2009 the top ten most active stock option contracts traded were:

  1. Citigroup (NYSE:C) March 5 Call Options
  2. General Electric (NYSE:GE) September 15 Call Options
  3. Citigroup September 5 Call Options
  4. Citigroup October 5 Call Options
  5. Citigroup October 4 Put Options
  6. S&P 500 SPDR ETF (NYSE:SPY) September 104 Put Options
  7. S&P 500 SPDR ETF September 105 Call Options
  8. S&P 500 SPDR ETF December 105 Put Options
  9. Financial Select Sector SPDR (NYSE:XLF) September 14 Put Options
  10. CBOE Market Volatility Index (VIX) September 25 Put Options

Note that the volatility Index options expire on Wednesday of this week. As the stock market continues to move higher there seems to be continued bearish bets, however today the bearish bets were lower than usual making up for only 40% of the top ten contracts. In my opinion a pull back is necessary, but since everyone is and has been expecting one, I think it will contribute to the market going even higher, perhaps the S&P 500 to 1075 and then 1100. I have been making money the last few weeks using the buy/write option strategy on several higher beta names but have the Volatility Index October options in place for a hedge. I am extremely bearish on AIG after the move it made to the upside today. Let’s face it, the stock is worthless and in my opinion it is only a matter of time until it sells off significantly. Citigroup option contracts are back trading among the most actives, after a few days last week trading only one or two contracts in the top ten. General Electric broke to the upside today and it looks as if the September 15 call options followed it. For the third day in a row the Financial Select Sector SPDR (XLF) September 14 put options traded among the most actives. Other than that, there was nothing really too exciting in the options market today.