Players Collect Premium As Light Order Flow Continues
The
recent streak of light order flow in the options market showed no
sign of abating this Tuesday morning, as options players continue to await the
results of today’s Federal Reserve meeting. With
consumer confidence spiraling downward in January, continuously poor earnings
reports that bring in volatility in their respective names, and an anxious
uncertainty concerning future interest rate cuts, traders are
holding their cards close to their chests.
In today’s
(meager) morning activity, call sellers once again widened their lead
over buyers (at a 2:1 ratio), as traders elected to collect some premium. Order
flow remained light, registering a 2 on our scale of 1 to 10.
The tech sector saw an especially marked increase in the ratio of call
selling to buying over previous day’s activities.
Here’s what
today’s numbers look like…
Pre-open
order volume was very light again this morning. Overall, call sellers led buyers
2:1, while put sellers squashed buyers at 3:2. In pre-bell activity,
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CSCO |
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call sellers outnumber buyers 5:1, while put sellers trounce buyers 9:1.
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SUNW |
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call sellers led buyers 6:1.
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TXN |
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call buyers showed up leading sellers 6:1.
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GE |
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call sellers crushed buyers 3:1.
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BEAS |
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call sellers trounced buyers 5:1.
First–hour
order volume was light. Overall, call sellers led buyers 3:2, while put sellers
squashed buyers at 3:2. In first–hour
activity,
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AMAT |
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call sellers outnumber buyers 4:1, while put buyers trounce sellers 9:1.
SUNW call sellers led buyers
2:1.
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AOL |
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call buyers showed up leading sellers 3:2, while put sellers beat up buyers 8:1.
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CHKP |
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call sellers crushed buyers 5:1.
(
ARBA |
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call sellers trounced buyers 3:1.
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CPQ |
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call sellers trounced buyers 6:1.yes”>
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SCMR |
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call buyers outnumber sellers 2:1.
Order
volume has trickled down while volatility has come in somewhat, but all this
might change with a rate cut from the Fed. We still have our search engines on
and will inform you all when something juicy pops up.tonys@tradingmarkets.com