Archive for March 5th, 2008
Crude settles up $4.93 to record $104.45 a barrel on OPEC’s non-decision and suprise drop in stockpiles. The US Oil Fund is up $3.46 to $82.85, but sentiment is decidedly neutral, as some bold traders seem to be betting on a reversal with long March and April puts on the fund.
Sentiment is bulllish and volume is running 6 times normal. Strength in the share price is being attributed to RENEWED takeover chatter. This one has been around for awhile. chart
options hit 12x average daily volume this morning on several very large blocks that traded on the ISE in what was likely a complex legged transaction in Jan-09 options. Just before 10am 10,000 Jan 12.5 Puts traded were crossed on the $2.40 bid, followed 20minutes later by 5000 of the Jan 17.5 Calls at mid [...]
Tibco is seeing three times normal volume after Citi analysts said this morning that there is a better than 50/50 chance it will be acquired in next 12 months.
Bonds are taking a hit as flight to safety moves out of Treasurys and soaring crude heightens inflation risk. The benchmark ten-year Treasury Bond is down 24/32nd. Like the VIX, the iShares Long-term Bond fund is down three days straight, now off 90 cents to $91.83 a share. Fear is falling. One player appears to [...]
risk perceptions are lower as a stronger ISM Services Index (49.3 vs. 47.3 consensus) overshadowed other mixed economic data. With stocks broadly higher, the CBOE Volatility Index is down for a third day, from an intraday high of 28.13 on Monday to 24.36 midday Wednesday.
Ambac is halted on pending news about a rights offering. Seeing increasing interest in puts on some of the other lenders including WM, NLY, FRE
Ambac is halted. Seeing action in PMI, MBI as investors await the news
Short strangle play. Players sold the XHB September 14 puts and September 27 calls for a credit of $2.05 per strangle. This exchange-traded fund holds shares in 21 different housing and homebuilding companies. Premiums (implied vols) are high for obvious reasons. However, the short strangle seems to have a relatively high probability of success, because [...]
Options on IBKR typically trade fewer than 2000 contracts per day, but spiked yesterday when a large block of 11000 March 35 Calls were sold on the PHLX for 5 cents and crossed by the executing broker. These calls did not create new open interest and appear to close a long-call position established on Dec [...]