Options update for June 9...watch out for the Bermuda triangle!
Another corpse today--ABC losing some 60% of its value in one day. As Will mentioned, this continues the string started by Bre-X, carried on by GNU etc. All of these options trade in one corner of the floor, which is starting to look like the place where stocks go to die. A wag put an 'X' after the GNU symbol on the post (a la Bre-X), and now we have ABCX as well. For what it's worth, Nortel and Newbridge are situated in this corner as well...
ABX: Very little trading in the options lately. One of the pros did a 500 lot calender spread with an institution, but that was about it. Gold looks range-bound between $340 - $345; hard to get excited until it breaks out either way. (29,29)
N: Inco players seem to having a hard time sorting out whether this strike will be good or bad for earnings. Far too complicated for my little brain. I'll just wait this one out. (26,26)
BCE: Bell has been the star performer of my portfolio the last several weeks--up some 20%. As Dave Simmons has pointed out, it has ridden the coat-tails of NTL up. As well, there is always some "dividend-buying" (it goes ex-div Wednesday), but...nothing goes up forever, and Nortel showed some weakness today, so I'm short now, looking for a pull-back to the $36 range. (21,21.5)
Strange to see the Dow surging ahead with bonds down about 5/8ths. This situation cannot continue--one of the two has to reverse to get back in synch. I think the bonds are the accurate guide right now.
All this is IMHO, of course.
Happy trading.
Porter |
