MO-wed Down
The market will open lower this morning on the
back of warnings from Philip Morris
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PowerRating), Wyeth
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PowerRating), and SBC’s
announcement of 11,000 job cuts. In addition, GE has been downgraded by Lehman
and CSFB over earnings concerns. Also it is being reported that Taiwan
Semiconductor will lower 2002 capex to $1.65B from $2.0B. On the positive side
of the ledger, Procter and Gamble
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PowerRating) has reaffirmed their current
quarter, and it is month- and quarter-end markup time. We saw the shenanigans
beginning to take place late yesterday, and I’m sure it will gather momentum
today. This makes me think that today’s lower opening must be bought (only for
the brave, only for a trade).
Currently, DJI futures are 52.0 lower, S&Ps are 6.00 lower, and Nasdaq 100
futures are 4.00 lower. In Europe, the FTSE 100 is up 25.70 points, or .67%, the
DAX is down 36.91 points, or 1.22%, and the CAC40 is 33.30 points, or 1.12%
lower. In Asia, the Nikkei gained 209.52 points, or 2.25%, and the Hang Seng
rose 23.75 points, or 0.26%. Currently, interest rate futures are higher (yields
lower), the dollar is a little higher, crude is unchanged, and gold is
slightly higher.
Today will be a trader’s market. A lot of slop, volatility and manipulation. The
trick is to watch the tape and try to guess at what "they" want
higher, then get in front of them. As I mentioned above, I will probably buy
this lower opening, just because of the calendar.
Volatility
With the fragmentation in the market yesterday, the volatility indices
traveled in different as well. The VIX slipped 2.30 to 40.11, but the VXN
climbed 2.40 to 59.09. The QQV fell .50 to 48.47.
Update: (09 /26/ 02)
Nothing.
New Recommendations
(
BP |
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PowerRating) — Buy the October/January 40 put calendar spread ( buy the
January 40 puts, sell the October 40 puts) at $1.20 (25%).
Working Orders (Old Recommendations)
(
AMGN |
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PowerRating) — Sell the remainder of the January 30/40 put spread at
$5.00. (Far away.)
(
CCU |
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PowerRating) — Bid $1.50 for another 25% of the January 40 calls. (Far away.)
(
IBM |
Quote |
Chart |
News |
PowerRating) — Sell half of the January 50/60 put spread at $4.00.
(
KSS |
Quote |
Chart |
News |
PowerRating) — Sell half of the January 60/70 put spread at $6.00.
(
S |
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PowerRating) — Sell half of the January 35/45 put spread at $6.00
Recap of open trades
Long-term
Reverse Collars
(
CIEN |
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PowerRating) — Long the January 2.5/5 reverse
collar at $.40 (25%).
Buy-writes
(
HAL |
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PowerRating) — Long the January 15 buy-write at $12.05 (100%).
Proxy buy-writes
(
DYN |
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PowerRating) — Long the January 15 calls at $3.20 — left over from proxy
buy-write (50%). Left for dead.
Complex Strategies
None.
Directional Positions
(
AMGN |
Quote |
Chart |
News |
PowerRating) — Long the January 30/40 put spread at $2.50 (25%). Sold
half at $2.50, 9/25/02.
(
BAC |
Quote |
Chart |
News |
PowerRating) — Long the January 50/60 put spread at
an average price of $2.50 (75%).
(
IBM |
Quote |
Chart |
News |
PowerRating) — Long the January 50/60 put spread at $2.00 (50%).
(
KSS |
Quote |
Chart |
News |
PowerRating) — Long the January 60/70 put spread at $3.00 (25%).
(
S |
Quote |
Chart |
News |
PowerRating) — Long the January 35/45 put spread at $3.00 (25%).
Short-term
Call Positions
(
CCU |
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PowerRating) (2) — Long the January 40 calls at $2.50 (25%).
Call Spread Positions
None.
Put Positions
None.
Spread Positions
(
AHC |
Quote |
Chart |
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PowerRating) — Long the October 65/70 put spread at $1.50 (25%). Sold
at $3.00, 9/24/02.
(
C |
Quote |
Chart |
News |
PowerRating) — Long the December/September 30 put calendar spread at $.975
(50%). Sold half at $2.20 on 9/16/02. Sold remainder at $2.67, 9/24/02.
C — Long the January/September 30 put calendar spread at $1.20(50%). Sold
half at $2.45 on 9/16/02. Sold remainder at $2.97, 9/24/02.
(
MMM |
Quote |
Chart |
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PowerRating) — Long the October 110/120 put spread at an average price of
$2.65 (100%).
Sold 25% at $4.00 on 9/17/02, sold 25% at $4.00 and 25% at $5.00,
9/24/02.
Stops
None.
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- Options trading involves substantial risk and
is not suitable for all Investors. - Also note that spread strategies involve
multiple commissions and are not risk-free. Most spreads must be done in a
margin account.
- Because of the importance of tax
considerations to all options transactions, the investor considering options
should consult with a tax advisor as to how taxes may affect the outcome of
contemplated options transactions.
- Supporting documentation for claims,
comparisons, recommendations, statistics or other technical data will be
furnished upon request. One or more of the contributors to these
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- It is important to note that the options
strategies discussed herein are not suitable to all investors. Options are
complex investment tools and involve substantial risk. Moreover spreading
strategies do not eliminate risk and involve multiple commissions.
- Note: All individuals must have read the ODD
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