Speculator Alligator

  • August 7, 2000
  • Dave Baker

Stocks posted gains across the board on
Monday. The S&P futures were unable to move back above 500.

The VIX closed at 21.40, down 
0.18. The current level of the VIX suggests that options are currently low
priced.

The OEX closed at 803.73, up 7.88
points.

The TRIN closed at .55.

The TICK closed at +600.

The TIKI closed -3.

The top 5 call options by volume were:

The top 5 puts options by volume were:

This activity in puts several months
out suggests that traders may be selling puts on speculation. When puts are used
as a protective hedge, traders often use front month near-the-money strikes.

Buyers came into the techs following
the mid-day decline. The Nasdaq futures rallied over 40 points off their lows.
The S&P futures reversed in the morning, traded up, then entered a
consolidation from which they broke out and trended high all day. The trading
range late in the day was rather large. Daytraders will notice that they bounced
off their 50-period MA on the five-minute charts at the close. Both indices
closed near the tops of their ranges.

Ciao,

David
Baker