Options update for 30 Oct...Everyone out of the pool! (Again).
After a day off yesterday, the bears are back on the prowl. Tomorrow should be more of the same, since no one will want to hold long positions over the week-end. I'm still expecting another 10% decline, but it will probably not be as dramatic as Monday...more like a grind it out downward drift with lots of abortive sharp rallies (the classic bear trap).
ABX: Barrick put on a big rally today which left me behind. I know gold has regained about $8 in the last few days, but until it breaks above $322 spot, I'm not going to go long. Call volatility has remained high...no sellers in sight. (40,34)
BCE: Bell grudgingly gave up .60c today, finishing near the low. The nine-day weighted MA has broken down through the 100-day average, which is a bearish indicator. Again, call volatility has skyrocketed. I can't remember Bell vol trading this high on a sustained basis.(29,25)
N: Inco has yet to put on any sort of rally. How much lower can this dog go? I don't know, and I've given up trying to guess. Broken record time, but call vol continues to climb as the public tries to pick a bottom. (37,33)
Monday ought to be interesting since we're listing Ballard Power options. This thing is as thin as orphanage soup; it's going to be a real bear to trade until we get some open interest going and a feel for the volatility. Wish me luck.
Happy trading.
Porter |
