Big Names Dominate Low-Volume Options Activity

Three large-cap stocks - Netflix (NFLX), Honeywell Aerospace (HONA), and Microsoft (MSFT) - dominated unusual options activity yesterday.

The Vol/OI (volume-to-open-interest) ratios for these stocks were significantly higher than the rest, with NFLX at 205.13, HONA at 101.70, and MSFT at 78.80.

On a day when overall options volume was low at 44.6 million - just 71% of the 90-day average - these stocks stood out, suggesting that even with reduced trading activity, the most well-known names tend to lead the way in options activity.

The unusual activity on these stocks pointed to three different options strategies: a Risk Reversal (Protective Collar) on NFLX, a Long Call Ratio Spread on HONA, and a Bull Call Spread on MSFT.