Market Limps Into Supreme Weekend
The market seems eager to take a step back and lick its
wounds this morning after yesterday’s rout. Volatility has come down slightly as
the tech sector, hit especially hard yesterday, is witnessing a rebound. Modest,
these days, is 10%, with option-friendly stocks like Extreme Networks
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EXTR |
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$7 to 58 3/8 and Winstar Communications
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WCII |
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in these names were over 100% yesterday, EXTR pushing to 180%! Buying verticals in these names yield
extremely good values.
Options players should prepare themselves for a bounce
today, as the Supreme Court hears oral arguments from both camps on a key case
that could decide whether Gore concedes, or not. While no decision is expected
for at least a few days, media interpretations could send shock waves into an
already jittery market.
Pre-open
order volume was heavy this morning. Overall, call sellers and buyers are even
at 1:1, and put sellers outnumber buyers 2:1 Techs, as usual, take the
lead in order volume, with the top names as follows:
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INTC |
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CSCO |
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MSFT |
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ORCL |
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(
AOL |
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PowerRating). CSCO put buyers made their presence felt, leading sellers 4:1. MSFT
call buyers outnumbered sellers 3:1.
(
SUNW |
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(
JDSU |
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By now, those low price options are either hefty
in-the-money puts or worthless calls. Rolling into January puts on a ratio
(should be able to buy more with lower strikes) and calls (will cost to roll
down and out), should give those of you whom are on the long premium side some
extra leverage. For those selling premium, you are getting better levels to
sell, if not squeezed to death. Scaling is a virtue.
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