From the monthly archives:
News Flash! The markets were lower this year (oh, really?), finishing with the worst one-year performance since 1931.
Today, the S&P 500 Index (SPX) finished up 12.61 points, closing at 903.25 and ending the year down 564 points. The Dow Jones Industrial Average (DJIA) rallied 108 points on thin volume, recovering 1.25% [...]
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To the tune of “Auld Lang Syne”–
If volatility comes in,
And trades below for-ty
What will that mean for traders,now
Who long for premium?
If volatility comes in,
Oh, volatility,
The premium will disappear
For all traders in ’09.
The CBOE SPX Volatility Index is now threatening to end the day and the year below 40 for the first time since October [...]
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As expected, option volume was very light today. However, the OptionsHouse Hotlist highlights investors’ concerns for Dow Chemical (DOW) and Rohm and Hass (ROH).
Earlier today, the Kuwaiti government announced it has canceled a planned joint venture with Dow Chemical, which many analysts expect will impact DOW’s $18 billion acquisition of Rohm [...]
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There was an interesting piece in Barron’s this weekend which talks about the effect of MS and GS becoming banks. Their fiscal year is now based on the calendar year vs. ending Nov. 30. The article points out that this leaves December somewhat orphaned and it may not be a bad time for [...]
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S&P 500 futures (ESH9 895.50 +3.00) spiked higher on the headline that President Bush will make a statement regarding the auto makers at 9:00 am Eastern time. The S&P 500 futures had been trading lower in the pre-market by about 12 points. Officials have been cited by the Dow Jones newswires [...]
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Last night, Apple (AAPL) founder Steve Jobs bowed out of the keynote address at MacWorld, and this seems to be unsettling to traders this morning. The stock is down 7% to the $88.50 mark. Over 100,000 options have traded in this name already. Both the December 90 and 95 calls are trading [...]
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In a possible acknowledgment of the market rate for Fed Funds hitting 0.14% yesterday, the Fed made official its FED Funds Target of a range between 0 and 0.25%. The headlines following indicate Ben Bernanke et al believe rates will be low for the foreseeable future. Also noteworthy was the comment that the [...]
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Many market watchers expect a cut of 50 basis points in the Fed Funds Target rate today; however, the effective rate is already very close to 0%, so the actual cut is not the point. The real thing to watch is whether any indication will be given regarding new actions by the Fed to [...]
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Yesterday, we noticed some out-of-the-money put selling activity on a few retailers, including Best Buy (BBY). The electronics name saw a slew of January 17.50 puts trade at 45 cents per contract. As we noted here (and in The Wall Street Journal), this put selling was likely not an overly aggressive bullish play, [...]
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In what may indicate hopes for a retail bottom, there is heavy out-of-the-money put selling transpiring today on J.C. Penney (JCP), BJ’s Wholesale Club, Inc. (BJ), and Best Buy (BBY).
On JCP, the January 15 puts have seen volume of more than 17,000 contracts, which last traded at a price of $0.60. With [...]
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