Options update for June 24...the market takes a mulligan.
Welcome to the casino. Nothing like 350-odd Dow points in two days to shake your fillings. Hate to say it, but this takes me back almost exactly ten years--remember?
ABX: Barrick tried to rally on the opening but quickly filled in. The last two days the public has been aggressive call buyers, raising the volatility two points. The stock has also been trading very heavily, almost 5 MM between Toronto and New York yesterday and 3+MM today. The 9-day RSI points to a very over-sold condition, but I have to remind myself to wait unitl it starts going up before I buy it. There's also the old adage that price follows premium. Anyway, I'm long and looking for a rally. (31.5,29.5)
BCE: Bell was the sisty ugler at today's party. Sure, up .85c, but that pales in comparison to NTL +$2.85, and the banks, which looked like homesick angels, particularly after the bid for National Trust came out. Maybe last week's NA call buyer was confused and bought the wrong National...? Limited option action. (21.5,21.5)
N: I've been delta short Inco since about $45 and now at $42.20, I've made about $500. Yep, the option player's nightmare....cover too soon, watch premium decay, all the bad things that can happen. "You don't jump up to catch a falling refridgerator" (credit: Don J.) Inco has reached the last low set in early April, with an inexhaustable supply on offer. I'm taking a stand here, hoping it will hold. Again, the RSI shows a very over-sold condition. I bought about 5K here, looking for a bounce. (26.5,26)
A real bummer for me today to look into the training room and see the advance crew from OM setting up the prototype for fully-automated trading. I've got nothing against computers (when I can get mine to work properly, that is), but I am totally opposed to everything automation represents--the creation of a dealer market, the death of liquidity, agency-principal crosses, well, if you've followed this thread much you know the list. They know not what they do (notice I did not say 'forgive them').
This is all IMHO; no specific buy/sell recommendations are implied or intended. (Happy, OSC? Why don't you do some real work?)
Happy trading.
Porter |
