‘You Can Observe A Lot Just By Watching’ — Yogi Berra
Those of you with strong stomachs may
want to hold that short SEBL 30 â€” 25 put spread (sold March 6
for $2.25), but weâ€™re taking half that spread off for $0.85 and letting the
other half ride. I guess it’s just too tempting to pull $1.40 off the table
against the $2.75 we had to put up in margin. For those of you that are
counting, thatâ€™s a 50% return in a little over a month. OK, weâ€™re nearly
breaking our arm patting ourselves on the back, but as Yogi Berra said, you
can observe a lot by just watching!
As far as today’s market activity, the reaction to CSCOâ€™s shortfall and
warning has been muted, but as you may note from our chart below, the $
weighted put volume has been trading near 20:1 all day.
PowerRating) has certainly put in a
stellar performance today, as the former AT&T spin-off is trading up
$3.24. You have to wonder how many folks out there dumped NCR and held Lucent
PowerRating). My guess is anyone that made that trade isnâ€™t talking about it!
A little over an hour ago we tracked an institutional customer selling 3000 Texas
PowerRating) April 30 calls for $4.10 on the AMEX. TXN was
trading for 33.62 and has since slipped to $33.07. The calls fell to $3.60, go
figure! Keep in mind that they declare earnings after the close today, so
someone wanted to write some premo, thinking the news wouldnâ€™t be good
enough to lift the semiconductor and digital-signal-processing giant.
Likewise, someone pretty big was buying puts in Intel
PowerRating) this morning. We showed 7000 July 22 Â½ puts for $1.65. Given all
that action on the bearish side, I guess the smart money is more worried that
confident about the semis.
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