Monday Options Recap
Frederic Ruffy submits: SentimentTrading is orderly Monday. After the Dow’s 178-point nosedive Friday, the underlying tone of trading remained cautious early. The domestic economy was in focus after data showed personal spending up .7 percent and incomes .4 percent in December. Economists were looking for increases of .6 percent and .5 percent, respectively. Separate data released later showed the Chicago PMI up to 68.6 in January and much better than the 65.0 that the economists were expecting. Coal stocks are higher after Alpha Natural Resources (ANR) made a bid for Massey (MEE). Meanwhile, Exxon Mobile (XOM) is among the best gainers in the Dow Jones Industrial Average after the oil giant’s earnings topped analyst estimates. 16 other Dow stocks are higher, 13 lower, and the industrial average is up 40 points in the final hour. The tech-heavy NASDAQ has added 10. The CBOE Volatility Index (.VIX), which settled above 20 Friday, is down .33 to 19.71. Trading in the options market is much slower than Friday, with about 6.9 million calls and 6.2 million puts traded so far.Bullish FlowYahoo (YHOO) is trading up 24 cents to $16.07 and overall flow seems bullish today, a few days after shares fell 2.8 percent on earnings news. Shares have now recovered the losses and today's options volume includes 61,000 calls and 16,000 puts traded. February 17 calls, which are 5.8 percent out-of-the-money with 18 days of life remaining, are the most actives. 16,200 traded. Another 12,200 July 20 calls have changed hands. TheComplete Story »
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