Call Buyers Peep Through Rubble After Market Explodes

  • March 13, 2001
  • Tony Saliba

Yesterday’s
market meltdown sent shivers down traders’ and investors’ spines,
and seemed to send options players running for the hills. Options traders are
continuing this now nearly habitual practice of selling premium today, albeit at
a less frenzied pace.  Bottom
pickers and call buyers are sniffing around as well, perhaps indicating that the
massive selloff has at least hit its plateau. Volatility
spiked big-time throughout the day yesterday, and has come in somewhat in the
early morning markets today. Order flow
is very light this morning, registering a 1.3 on a scale of 1.0 to 10.0 with 2.1
being our 30-day moving average.

Our search
engines are picking up some unusual activity in the following names:
(
MNMD |
Quote |
Chart |
News |
PowerRating)
has emerged on the radar with some call buying going on pre-bell. Call buyers
are staking a claim in
(
BBH |
Quote |
Chart |
News |
PowerRating) as well. On the other hand,
(
DVA |
Quote |
Chart |
News |
PowerRating) calls are
being sold off.  Finally,
(
ENZ |
Quote |
Chart |
News |
PowerRating)
put sellers are rattling their sabers.

Here are
today’s numbers…

Pre-bell
order flow was light this morning. Overall, call sellers and buyers were even at
1:1, while put sellers beat out buyers at 2:1.  In pre-bell activity,
(
INTC |
Quote |
Chart |
News |
PowerRating)
call buyers outnumber sellers 2:1. 
(
IBM |
Quote |
Chart |
News |
PowerRating)
call sellers led buyers 3:2. 
(
BRCM |
Quote |
Chart |
News |
PowerRating)
call buyers showed up leading sellers 6:1. 

(
MSFT |
Quote |
Chart |
News |
PowerRating)
call sellers now dominated buyers 3:1. GE call buyers led sellers led 3:1. 

(
DVA |
Quote |
Chart |
News |
PowerRating)
call sellers showed up dominating buyers 14:1.

First
hour order volume remained very light this morning. Overall, call sellers and
buyers were even at 1:1, as were put sellers and buyers.  In first hour
activity, INTC call sellers outnumber buyers 3:2, while put buyers and sellers
were even. QCOM call sellers led buyers
2:1.  MSFT call buyers showed up
leading sellers 5:4. 
(
TYC |
Quote |
Chart |
News |
PowerRating)
call buyers now lead sellers 3:2. 
(
AMAT |
Quote |
Chart |
News |
PowerRating)
call buyers led sellers led 3:2. 
(
VTSS |
Quote |
Chart |
News |
PowerRating)
call buyers showed up leading sellers 3:1.
 

These
are trying times indeed for traders and investors alike. 
The next few day’s activities may reveal the trend of the market for
some time to come.  Our search
engines are on, and we will pass on any ripe fruit.



More
and more questions are coming in regarding my upcoming seminar of April 21-22.
I certainly appreciate the interest. I
will be conducting the seminar with my two top traders from here in Chicago.
We have all traded successfully through markets like these in the past,
and we plan on passing on our hard-won knowledge.
The seminar will be targeted at the advanced retail trader, and will deal
extensively with repair strategies and successful strategies for downward
markets. If you have been following my
“lessons,” you know my trading mantra is “Staying
Spread is Staying Alive.”
In markets like these I am glad. After
my seminar I hope to have you chanting it with me…



Keep
writing me those questions.  And
hang in there!! tonys@tradingmarkets.com