Tech Call Buyers First In Line In New Year
First of all, let me wish each and everyone a most happy and profitable
New Year! At the very least, we can say that the worst year in the market since the
1970s is now behind us, and that the ominous popping of the tech bubble, long
prophesied by old-economy market prognosticators, is a fait accompli at least to a
great degree. So perhaps the downside will carry less risk, as the year
unfolds.
But the first trading day of the New Year
is unfolding with a whimper, not the
bang that market practitioners had hoped for today. Still, given the market’s recent
downward trends, some traders are greeting this downturn as an inauspicious beginning.
Options players are witnessing another day of very light volume and increased volatility.
While the term “predominates” would be perhaps too strong given today’s
activity, we can at least say that call buyers are making their presence felt, especially
in the tech sector (with the notable exception of INTC).
Pre-open order volume was extremely light this morning. Overall, call sellers led
buyers 3:2, while put sellers led buyers at 3:2 also. Top five order volume leaders
were as follows:
(
INTC |
Quote |
Chart |
News |
PowerRating),
(
CSCO |
Quote |
Chart |
News |
PowerRating),
(
JDSU |
Quote |
Chart |
News |
PowerRating),
(
EMC |
Quote |
Chart |
News |
PowerRating) and
(
AOL |
Quote |
Chart |
News |
PowerRating). In pre-bell activity,
INTC call buyers
outnumber sellers 3:2. CSCO call sellers led buyers 3:2, while put sellers led buyers at
the same ratio. JDSU call sellers led buyers 3:1. AOL call sellers showed up leading
buyers 5:2.
(
SUNW |
Quote |
Chart |
News |
PowerRating) call sellers led buyers 2:1.
First hour order volume remained very
light. Overall, call buyers and sellers were even at 1:1, as were put buyers and
sellers. Top five order volume leaders were as follows: CSCO, INTC,
(
JNPR |
Quote |
Chart |
News |
PowerRating), and
(
QCOM |
Quote |
Chart |
News |
PowerRating). After the first hour activity,
(
BRCD |
Quote |
Chart |
News |
PowerRating) put activity was
heavy, with buyers and sellers split evenly. JNPR put sellers outnumber buyers 2:1.
SUNW and
(
GE |
Quote |
Chart |
News |
PowerRating) put sellers outnumbered their respective buyers 4:1. INTC call
sellers led buyers 3:1, while put sellers led buyers at the same ratio.
(
NTAP |
Quote |
Chart |
News |
PowerRating) call buyers
led sellers 4:1.
(
NOK |
Quote |
Chart |
News |
PowerRating) call sellers outpace buyers 10:1.
Light volume in the options market despite today’s early sell-off suggests indecision
as options players are testing the test the so far chilly New Year’s waters. If you
are still in our vertical positions (
(
CSCO |
Quote |
Chart |
News |
PowerRating) and
(
EXTR |
Quote |
Chart |
News |
PowerRating)) stand back and batten
the hatches. Let’s see where this rocky road is headed.