Options update for June 16...30,000+ TXO contracts, surely a record!
Granted, there were a lot of large crosses and 'block' trades, but I didn't see any over 4000...this looked like either a large institutional roll-up or the unwinding of tripos. Nonetheless, this has to be record volume for any class in Toronto's history. I doubt very much the TSE will bruit this around, since they want to have a very low base-line to compare their "new, improved" automated system against. They sure won't point out any successes the current system is enjoying.
BCE: Bell finally had a down day after setting an all-time high of $40.60 in early afternoon. I admit I've been short since about $39.25, but I never really put my shoulder to the wheel until it started to backfill from $40.60. I always had in the back of my mind Dave Simmonds' excellent (as it turned out) call of $40.00 for Bell, when it was in the mid-30's. Maybe now it's the bears' turn. I'm looking for $36 at least on a pullback or roughly a 40% retracement.
NTL finally showed some weakness today as well. (21,21.5)
ABX: Even a $1.70 rally in bullion couldn't help Barrick today, but all the golds were weaker. Volume on ABX options has dried to a trickle, so much so that when a client bought 100 July 35s we had to ask the trader two or three times what the volume was and was it a buy not a sell? Barrick has to hold $US 24.25 or it's look out below. (29,29)
N: Inco turned in another lacklustre performance today, drifting down to close on the lows at $44.65. In the last week or so clients have been selling puts and buying calls (especially a 200-lot buyer of July 42.5s, big for Inco)--this gets my contrarian antennae twitching, looking for more downside. (26.5,26.5)
I have so far managed to not play the OEX put game, but I'm getting real close to pulling the trigger. This market is so over-extended on a short term basis, I think the next down-draft could be significant. June swoon? About time.
Sign of the times: I found out that Sammy's, the venerable watering-hole whose chief attraction was that it was at the bottom of the escalator leading from the old Exchange, is closing its doors a week from Friday. Remarkable what trimming the clientele by about 300 traders and staff with an affinity for John Barleycorn will do to business. This is in addition to all the floor staff who lost their jobs, and the dry cleaners, coffee joints, lottery sellers, etc., whose business has suffered from closing the equity floor. And the market has benefitted how??? Hmmmm...actually, the equity market has gotten worse with automation. Before, four or five pros would discuss a 50K share offering, and collectively decide to buy it. Now that the pros are all dispersed to different locations, this doesn't happen. Everyone will buy the last 10,000 shares, but no-one wants to risk buying the first 10,000. It's only human nature. And remember, options are even more dependent on negotiation and cooperation. This exchange management team views professional traders as pariah who steal from the public, while every major exchange in North America recognises the vital role pros play in providing liquidity and fairness. When the pros are squeezed out in options, you will have to trade at prices determined by your broker (most likely owned by a bank), or if you use a discounter, your order will languish on the 'bulletin board' with no one guaranteeing a fill. How does that make you feel?
Sorry, I guess being off-line so much lately has led to a build-up of anger about where these clowns are trying to take the market. I know what they're up to, and when I fought them too much for Fearless' liking he cashiered me from my Chairmanship and committee memberships. I'm just afraid that by the time the full impact of what they're doing hits home with the public (and yes, even the toothless OSC), it will be too late.
All in MHFO, of course.
Happy trading.
Porter |
