Updated: Sep 1, 2010 6:11 AM EDT
Options
Khouw (212) 829-7028
XLF Dec 15 calls, 50k trade .34, buyer/bullish
NOVL buyers of the Oct 6 calls, 5400 traded so far today, well above average.
VRSN Sep 28 puts among most active options (4th most active), looks like a buyer, possibly closing - strike has almost 22k open interest. Near-dated options vol 3 clicks higher.
IWM dec quarterly 68/73 call spread, cust pays 1.00 for 20k bullish
HRB, 30k puts traded vs. 624 calls, most active are the oct 10 puts, 16.5k traded, followed by the jan11 10 and jan12 7.5 puts ~ 5k of each. Well above average. Earnings out 9/2
stk is off 43% ytd, trading 52 wk low Bearish.
ANV hit a 52 wk high, options traded 21x avg daily volume 3mo implied vol (price of options) was up from ~ 48 to 54. Most active were the October 25 calls which traded over 12k contracts at an avg price of 1.274 a bullish bet with an upside breakeven up 12% from Tuesday's close. Bullish.
SPX vols were little changed, in the VIX Spot, and the front month futures were slightly lower, longer dated futures closed very slightly higher. Volume was over 30% higher than Monday, but volume was still ~10% below the daily avg for August and 30% lower than the daily avg on the year. In the low volume, and despite comments made by Russell Abrams, founder of Titan Capital that the market is underestimating the likelihood of a crash, there were a couple bullish bets being made. Abrams comment - “They are pointing to a much more dangerous environment than what equity investors believe,” he said. “Either you’re going to see the bond market make the big move or the equity market make the big move; the current situation is not in equilibrium.”
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