Option Block 102: Turn Off the Idiot Box
Option Block 102: Turn Off the Idiot Box
Trading Block: Bonds rallied, volatility exploded. MF Global news, combined with inflation and the Japanese efforts to intervene in their currency, provided for a big up day in the dollar. Given the lack of volume, the market had a strong sell-off today. Here in Chicago the Merc and the Board had to come down and say no trading. Gold and silver, they've been down a bit and out of the news spotlight, but could there be another run on it give the lows here?
Odd Block: Unusual activity in:
Chesapeake Energy (CHK) - Traders came in and bought 12,000 of the Nov 28 puts, with earning coming out on the 3rd, this may not be a good sign for CHK
The Materials Sector (XLB) - A 12-to-1 put to call ratio in XLB today, 42,000 of the 34 puts and 66,000 of the 31 puts traded. We saw a trader sell about 10,000 of the March 26 puts, a big sell in Dec 29 and buy of Dec 31 puts, this could be traders setting up hedges, looking for ways to get long in the sector.
Herbalife (HLF) - Earnings just came out, and in the spirit of Halloween, they were quite scary. Already off 10% before the bell, a very strong sell-off. It seems companies that miss a little bit on their earnings have not been treated well.
Strategy Block: Host Mark Sebastian gives a special strategy block, "Turn off the Idiot-Box". If you're an active trading, turn off what CNBC thinks the market may do and watch the market the see what it actually does and you are bound to have better success.
Around the Block: Looking for some follow through on last Thursday's big volume move or any stocks that hit new highs and were able to hold on to those highs. A lot of earnings and employment data come out this week, so you may be on the edge of your seat. Tomorrow may be a big day, as people try not to miss another big up-turn. But overall the tone will be set by the international markets.
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