All Eyes On Al

  • January 31, 2001
  • Tony Saliba

With the Fed meeting this afternoon, our volume has been anemic, as everyone has
noted this week. Still, there is a reasonable expectation that there will be action today
by Mr. Greenspan, and thus some jockeying to even up positions.

We have noticed pre-open and first-hour activity picking up in
(
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PowerRating) and in
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PowerRating). We ran
a search for reasonable risk/reward and came up with these February choices…

Both of these spreads find a a better than 100% return with a 10% price improvement in
the next two weeks. The search we ran on the open was a bit better, but at press time,
these popped their heads out and are interesting.

Here’s what the morning numbers showed me…

style=”mso-bidi-font-weight: normal”>Pre-open order volume was light this morning.
Overall, call sellers led buyers 2:1, while put sellers squashed buyers at 3:2. In
pre-bell activity,
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PowerRating) call sellers outnumber buyers 2:1, while put sellers trounce buyers 7:4.style=”mso-spacerun: yes”> style=”mso-spacerun: yes”>
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call sellers led buyers 8:1.
(
TXN |
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PowerRating) call buyers showed up leading sellers 7:3.
(
GE |
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PowerRating) call sellers lead buyers 2:1.
(
ADBE |
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PowerRating) put sellers crushed buyers 4:1.

style=”mso-bidi-font-size: 10.0pt”>Firststyle=”mso-bidi-font-weight: normal; mso-bidi-font-size: 10.0pt”>-style=”mso-bidi-font-weight: normal”>hour order volume was style=”mso-bidi-font-weight: normal”>moderate. Overall, call sellers led buyers almost
style=”mso-bidi-font-size: 10.0pt”>style=”mso-bidi-font-weight: normal”>2;1,
while put sellers led buyers at 3:2. In
first–style=”mso-bidi-font-weight: normal”>hour activity, style=”mso-bidi-font-weight: normal; mso-bidi-font-size: 10.0pt; mso-spacerun: yes”>
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PowerRating)style=”mso-bidi-font-weight: normal”> call bstyle=”mso-bidi-font-weight: normal”>uyers outnumber sellers
9:7style=”mso-spacerun: yes”>, while put sellers style=”mso-spacerun: yes”>style=”mso-bidi-font-weight: normal”> trounce buyersstyle=”mso-bidi-font-size: 10.0pt”> 2:1. style=”mso-bidi-font-weight: normal; mso-spacerun: yes; mso-bidi-font-size: 10.0pt”>
(
AOL |
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PowerRating)style=”mso-bidi-font-weight: normal”> call sellers style=”mso-bidi-font-size: 10.0pt”>showed up leading
buyers 4:1, while put sellers beat up buyers 2style=”mso-bidi-font-size: 10.0pt”>:1. style=”mso-bidi-font-size: 10.0pt”>style=”mso-spacerun: yes; mso-bidi-font-weight: normal; mso-bidi-font-size: 10.0pt”>ADBE
put sellers led buyers 14:1, call buyers led sellers 9:7style=”mso-bidi-font-weight: normal”>. style=”mso-spacerun: yes; mso-bidi-font-weight: normal”>TXN call sellers showed up leading buyers 8:5.
SUNW call sellers led buyers 3:2, while put buyers led sellers 3:2.

Sellers of premium still dominate, but at a slowing rate. Keep your eyes glued to the
screen and see what Mr. Greenspan has to say. Our search engines are on and ready.
We suggest acquainting yourselves with the graphics above from our proprietary
spread-search engine, as we will be making extensive use of it in the days and weeks to
come.

Keep sending me your questions, and I’ll keep answering

tonys@tradingmarkets.com