Options update for April 30...Timing's not important, it's everything
Talk about your beauty of coincidences--mid-afternoon the Torex (automated equity trading system) went dark. We were completely shut down, unable to trade stocks, and then our ARM system went down as well, meaning we couldn't trade options either. And yet, anyone who had an old CATS machine, as most brokerage houses still do, could still trade. During this period Freeport's decision to extend its due dilly was announced and BXM ran from $3.30 to $3.95 and back, but NO OPTIONS could be traded because the automated stock system was down! This was just before they started decorating the floor for the reception scheduled to mark the opening of our new location. This comes a day after the Gang That Couldn't Trade Straight orchestrated the vote to eliminate us in the next year. The whole thing is farcical. I hung around for an hour to see if Fearless or Betty would show up, but no luck. Maybe they came after I left. Probably for the best that I didn't encounter either of them. I sometimes speak a little too bluntly for my own good. (Have any of you noticed that?)
ABX: I keep expecting this stock to blast out on the upside, but nothing doing. Volume in the options has slowed to a trickle. (32.5,30.5)
N: Inco rallied over a dollar in steady trade. A smattering of option activity, but no trend. I think Inco will continue to work higher.(26.5,26)
BCE: Bell finally joined the parade to the upside late in the day. Option volume picked up nicely. A Levesque custy bought 100 May 67.5 puts in a $25K bear bet. Overall even mix of buying and selling. If Bell were to match the performance of the banks, it would be about $70. I guess everyone's waiting for today's CRTC rulings. (21,21)
I am ineffably saddened by the Board's decision to automate derivatives. I have spent 16 years here trying to promote our market and the Board's decision spells the beginning of the end. You will all be subjected to a deluge of happy horse-shit from the Exchange about how they are going to spend tons of money on education, promotion...empowerment, seamless integration, yadda, yadda, yadda. Just remember that they have cut out the heart of a viable, fair market by eliminating the auction part. They will end up with a high-tech trading engine, but 'this boat won't float'. After all the years I have spent helping draft, interpret, and enforce our trading rules, I am keenly aware how even moving a comma can affect them. When I read the blueprint and their proposed rule changes, I was incredulous...they could not be more skewed in favour of the upstairs pros. This is truly a case of the fox designing the chicken-coop. Our only hope from here on may be the OSC (though I doubt they would stand up to the TSE on this), and regrettably, the court of public opinion. Remember, this is all in my humble (but professional) opinion.
Happy trading.
Porter |
