Archive for March 7th, 2008

CBOE Volatility Index (.VIX) $27.49 -0.22%

De-hedged. The CBOE Volatility Index spiked up to 29.29, its best levels in almost a month, after another round of selling sent stocks lower in afternoon trade. However, the fear gauge is set to close modestly lower because important event risk has passed. Moreover, peering into the future reveals light earnings and economic calendars early [...]

March 7, 2008 More

F5 Networks Inc (FFIV) $19.39 +0.15%

Volume is three times normal. A large block (7,500) of F5 Networks April 25 calls recently crossed at 25 cents a contract. This seems to be leverage bet, or a cheap way to play FFIV for a rally over the next few weeks. There is no news. One note, however, F5′s (much smaller) rival Packateer [...]

March 7, 2008 More

Washington Mutual Inc (WM) $10.71 -9.80%

Whamo! Washington Mutual has seen steady put buying throughout the day Friday. Some of the top trades on the stock included both short and long-term put buys. The stock is down $1.50 to a multi (8?) year low of $10.26 and put volume is outpacing call volume by a margin of 4.5-to-1. S&P downgraded the [...]

March 7, 2008 More

Boston Scientific Corp (BSX) $12.35 -2.67%

Boston Scientific call options saw an increase in volume midday Friday. Large blocks of May 10, May 12.5, and August 15 calls traded, mainly on the PHLX. It is possible that a bullish position in the May 10s was closed and rolled forward to the May 12.5 and August 15 calls. There is no news [...]

March 7, 2008 More

KB Home (KBH) $22.16 +0.50%

Bear call spread on a homebuilder. It appears that a strategist sold 1,056 of the KBH March 22.5 calls at 92 cents a contract and bought 1,056 of the March 25 calls for 27 cents a contract, which has the hallmarks of a bear call spread, or a bet that KBH will not make a [...]

March 7, 2008 More

CBOE Volatility Index (.VIX) $27.49 -0.22%

Chopped up post payroll. Stocks and bonds have been all over the place and the CBOE Volatility Index is now pushing back into positive territory. The knee-jerk reaction to the payroll data was met with modest buying interest, which produced a short-covering-fueled rally, that petered out midday and now investors are back on the defensive. [...]

March 7, 2008 More

Select Sector SPDR Energy Fund (XLE) $73.76 -2.83%

Crude is making another run into uncharged territory, up 70 cents to $106.17 a barrel. However, shares of energy-related stocks don’t seem to be reacting. The Select Sector Energy Fund (XLE), which holds all of the S&P 500 energy-related names, is down $1.13 and buying interest is being seen in the XLE March 75 and [...]

March 7, 2008 More

Amylin Pharmaceuticals Inc (AMLN) $25.10 +2.63%

March 30 calls seeing some buying this morning on chatter Eli Lilly (LLY) might be looking to acquire the company. The two have an existing partnership agreement related to injectable diabetes drug Byetta. AMLN’s market cap is approximately $3.3B and has been cut in half over the past seven months. It sits on $8.30 cash [...]

March 7, 2008 More

Amgen Inc (AMGN) $44.18 -0.14%

Calendar Spread. It appears that a strategist has opened a calendar spread on Amgen. With the stock near $43.70, a block (10,000 contracts) of the March 45 calls were sold for 95 cents and 10,000 of the April 45s were bought for $1.72. If so, the idea is for AMGN to hold steady and possibly [...]

March 7, 2008 More

Semiconductor HOLDRS Trust (SMH) $28.63 +0.66%

The Semiconductor HOLDRS are displaying relative strength Friday morning and some players are starting to poke around the March and May SMH calls on hopes for a bounce. The SMH, which holds shares in 18 different chip and chip equipment companies, is down 26.8 percent in the past 8 months. Texas Instruments (TXN), its third [...]

March 7, 2008 More
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