Volume in the MS Retail Store Index (.MVR) is running four times the usual, with 5,150 puts and zero calls traded on the day. Some of the action appears to be rolling of long puts from November to December ahead of this week’s earnings and retail sales report. Wal-mart (WMT) and other retailers report earnings Thursday. The Commerce Department’s Retail Sales Index for October is due out Friday. In the MS Retail Store Index, the November 95 and December 85 puts are among the most actives, with more than 2,000 traded in each. It looks as if an investor sold to close the November contracts (with the day’s trade hitting bidside for $7.00 a contract) while buying a similar number of December 85 puts (with most of the action trading offerside for $7.00 a contract).
Category: All Indexes
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.