Put Down The Coke

Although the
markets started out mixed, they are now green across the board.
Last night traders saw Dell’s latest earnings report. This
morning’s economic number was benign and suddenly shifted the tone
on Wall Street. Now some analysts are talking about a interest-rate cut.

The VIX is down 0.18 to 21.39.

The OEX last printed at 804.9, up
5.85.

The 30-year T-bond is at 5.685%.

The 50-year Treasury Note is at 6.012%.

The top five calls by volume:

  • DELL January 50s
  • MSFT September 75s
  • MO September 30s
  • MO January 2002 35s
  • MSFT August 75s

The top five puts by volume:

  • CSCO September 60s
  • QQQ August 90s
  • DELL August 40s
  • KO January 50s
  • QQQ August 85s

The activity in the January KO
puts suggests that traders are speculating against downward. Some
traders consider a high open interest on ATM strikes to be a
contrarian indicator and suggest a new support level.

Otherwise, the usual big names
have the greatest option volume.

The light volume in the options
market may provide sellers with an opportunity to take in higher
premiums.