Call Buyers Catch Wave As Order Flow Swells Slightly
As
the early morning stock market surges for the third straight day,
options players show some signs of growing confidence as well.
Order flow is moderate, registering an 2.2 on a scale of 1.0 to 10.0,
with our current 30-day moving average at 2.1. Call
buyers are slowly gathering forces, it seems, especially in some of the larger
tech names, such as
(
JDSU |
Quote |
Chart |
News |
PowerRating) and
(
QCOM |
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Chart |
News |
PowerRating).
To be sure, Call sellers still rule the day, claiming 70% of the order
flow in calls. All-in-all, the early
morning options market on this Wednesday morning remains fairly status quo, with
a hint of buying in the air. Our search engines are revealing some unusual
activity in
(
NEWP |
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Chart |
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PowerRating) and
(
PALM |
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Chart |
News |
PowerRating), where call selling predominates, and we
will follow these names as the day develops.
A glimpse at our
open suggested Microsoft spreads, the MSQ April 60/65 and the MSQ April 55/65
Call Verticals, reveals some heartening news. First, the MSQ April 60/65 is
offered at $2 ¼, with Softie stock
trading at 60 ¼, we got in at $1 13/16 thus we are up a little less than half a
buck. The MSQ April 55/65 is
currently offered at $5 9/16. We
got in at $4 11/16, thus we are up about 80 cents.
Here are
today’s numbers…
Pre-open
order volume was moderate this morning. Overall, call sellers led buyers 3:2,
while put sellers led buyers 3:2. In pre-bell activity,
(
JDSU |
Quote |
Chart |
News |
PowerRating)
and
(
INTC |
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Chart |
News |
PowerRating) call sellers
outnumber their respective buyers 7:2.yes”>
(
BRCM |
Quote |
Chart |
News |
PowerRating)
call sellers led buyers 2:1.
(
CSCO |
Quote |
Chart |
News |
PowerRating)
call sellers crushed buyers 2:1.
(
SUNW |
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Chart |
News |
PowerRating)
call sellers beat up buyers 2:1.
(
WCOM |
Quote |
Chart |
News |
PowerRating)
call buyers led sellers 2:1. WCOM call buyers led sellers 2:1.
First hour order
volume picked up slightly. Overall, call
sellers led buyers 2:1, while put sellers led buyers 3:2. In first hour
activity, INTC call sellers destroyed buyers 8:1, while put buyers trounce
sellers 3:1. CSCO call sellers led buyers
3:1.
(
BRCM |
Quote |
Chart |
News |
PowerRating) call buyers showed up
leading sellers 3:2. QCOM call
buyers crushed sellers 3:1. IBM
call sellers crushed buyers at a whopping 7:1.
Keep
writing me those questions!
tonys@tradingmarkets.com