Big Put Sellers May Indicate Nasdaq Bottom In Sight
Why
is it we all look forward to the after-Christmas sales, but hate a correction
in the stock market? I mean, after all, isn’t that exactly what we’re
getting right now?
Next question. How many of you would go running out to buy that hot toy or
cool set of cuff links when Bloomingdale’s offered them at a 10% discount?
My guess is the www.TradingMarkets.com subscriber is a
little smarter than that! You and I wait until the sale digs deep into the
overpriced nature of the season. Likewise, all educated traders shouldn’t
dive in for a mere 10% discount (correction), but should take a hard look at a
market that is giving them a 70% off sale!
OK, off my soapbox and back to trading. I was just getting so fed up with the
dope squad on CNBC that I had to vent!
During the midst of the selloff this morning, we saw an extremely large and
frequently VERY RIGHT institutional trader pile puts into several of the
battered tech stocks. For instance, this customer sold 10,000 SUNW April 15
puts and this followed a likewise interestingly good timing sale of the April
17 1/2 puts in the same name about three weeks ago. I’m not calling the bottom
for Sun Microsystems
(
SUNW |
Quote |
Chart |
News |
PowerRating), but
obviously a pretty big player is doing just that.
In fact, when you look at our tables below, you might note that there isn’t
strong one-sided dollar-weighted volume in any of the four stocks we’ve
highlighted. Hmmm, balanced dollar-weighted put/call on a 5% Nasdaq slide?
Doesn’t sound like the big money is panicking, does it?
|
|
Call
|
Put
|
$W
|
$W
|
|
Symbol
|
Volume
|
Volume
|
Call
|
Put
|
|
SUNW
|
30,053
|
19,160
|
44,845
|
52,816
|
|
VRTS
|
9,988
|
3,372
|
62,715
|
41,280
|
|
INTC
|
37,216
|
36,121
|
78,456
|
81,822
|
|
CHKP
|
17,106
|
17,497
|
2
|
200,405
|
(1010WallStreet.com
has licensed the use of Hamzei Analytics proprietary options analytics)