Rambounce
Yesterday we saw call buyers outnumbering put buyers 4:1,
those filled were justly rewarded by achieving a 5%-10% gain in the stocks
we mentioned. Yesterday’s pre-bell saw lots of call buying in RMBS with the news
that Intel was no longer going to use some Rambus memory chips.
Call buying continued throughout the
day and today those buyers are
being rewarded with an early A.M.
pop of 10% in the stock. Investors
in stocks seemed to especially love the tech sector in the morning, and this
sentiment was reflected in the options market with heavy call buying in NT, WCOM
and JNPR.
Pre-open
Today’s
pre-open looked a lot like a continuation of yesterday.
In terms of total activity, CSCO, MSFT, AOL, QCOM and WCOM constituted
the top 5 players.
Remember, total contract flow is based on the number of orders from
non-institutional players. We see a continued
interest on the upside in these
stocks today. Pre-open call orders constituted 80% of total order flow, with
call buys and sells split pretty evenly, 40% to 60%.
Puts made up only 20% of total order flow, with buys and sells evenly
split at 55% to 45%.
Note
we see a much greater activity on the put side in AMZN, where puts order flow
made up over 70% of the action. Of
this, 90% were put buys. Traders bullish on AMZN will see an opportunity to use this information to sell
puts into strength.
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