Dimples And Chad, A Thing Of The Past?
Over two weeks ago we said that this thing may go to the Supreme Court, and
that would spell death for the market. It is going to the Supremes, and it has
been death, from the election to date, but now the difference is that the
recount is done, and the court is hearing a Bush request to rule whether the
Florida Supremes overstepped their bounds. So by virtue of the certification,
and despite the contested action, we automatically now have closure and we see
this as a time to begin your premium selling strategies… naked or spread. The
action is much more lively, and with some reasonable retail news, we will get
the rally the election postponed.
Pre-open
order volume was above average.
Overall, call buyers and sellers were again, even. Put sellers ran 3:1
over buyers. Beaten down issues of
(
CMGI |
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(
YHOO |
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(
MU |
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PowerRating) and
(
SDLI |
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activity. There is an obvious reach for names that have looked lousy for the
past few weeks.
After
the first hour of trading, overall call sellers led buyers 3:1, while put sellers
led by a 2:1 margin. Top five volume leaders have shifted,
with
(
BRCM |
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PowerRating) call buying most active.
(
NTAP |
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PowerRating),
(
EXTR |
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PowerRating) and
(
BVSN |
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PowerRating) put buyers were most
active on the put side.
Use
this rally to cap off the vertical spreads we have open. As we emphasized in
this weekend’s lesson, use of this effective combination can exploit the the
directional bias of your choice.