Followup on EMC upside call action Friday. A total of nearly 36,000 Nov 13 calls traded on the day, with implied vols lifting 22 points to 77.5%. The stock closed up 32cents to 11.78 and earlier this year was mentioned in Cisco for EMC deal chatter. Most of the call buying took place at midday in large blocks for 23 to 30cents. A more bearish view was put on near the end of the day when a call seller unloaded 8500 Jan-09 14 calls for 62cents on the Amex, possibly taking advantage of the speculative spike in premiums and share price.
About the Author (Author Profile)
Henry Schwartz is the president of Trade Alert LLC, a provider of real-time options analysis tools to leading Wall Street firms. His systems analyze hundreds of thousands of transactions per second to help professionals identify and interpret market activity in real time, supporting informed trading decisions and intelligent idea generation. He has held institutional trading and management roles with Bank of America, Bear Stearns, Salomon Brothers and the Hull Group, and made markets on the CBOE and AMEX floors in the US, and EUREX and MONEP overseas. Prior to founding Trade Alert, he led the electronic market-making group at Bank of America coincident with the launch of the International Securities Exchange. He received his bachelor’s degree in Economics from the University of California, San Diego and his MBA from NYU’s Stern School of Business.