Options update for May 21...Nortel-mania!
What a performance Nortel put on--up $6.40. Hard to believe only 310 contracts on NTL traded. Don't forget you can use BCE as a proxy for Nortel if you want a cheaper play. Something like $23 of BCE's $36 share value is directly attributable to its NTL holding (thanks Dave Simmons; if the number's wrong blame my memory, not his math). I think they might be getting a little ahead of themselves, but then again I try never to fight the tape.
BCE: Bell acted like a bottle rocket in the afternoon--up $1.00 on very heavy volume (a big move for Bell). We lowered the call volatility a snick, although there wasn't much selling, just a defensive move. I think these options are *cheap*. Standard disclaimer: I may have long/short positions in these options (duh). Actually I have over 400 Aug 36.2s...I love them, they're the perfect trader's option. (20,21.5)
N: Inco slid on apathy to under $45, down from over $47 last Thursday. It looks like its trying to find a bottom around here. A fair amount of opening call selling, always a contrarian's signal for a rally. (26,26)
ABX: I don't usually give ABX third billing, but it is doing nothing lately and is starting to cheese me off. With the dollar's recent swoon I would have expected more from gold and thus Barrick, but nothing so far. (30,30)
The Dow rallied off its lows yesterday, but I still don't like the tone of the market. The bonds still look weak, and you've got to follow the money. Everyone seems to be whistling past the graveyard.
Happy trading.
Porter |
