Options update for July 28...if you can sit on the subway, you know it'll be slow.
Well, the summer lassitude seems to upon us at last. A couple of sleepy days on the floor, except for the base metal mania. New York just seems to be blowing with the wind with big swings. Still reminds me very much of the summer ten years ago...
N: Rare to give Inco top billing, but it deserves it today. It finally broke out of its consolidation at approx. $40.50 and today rallied up to 42.70, closing at 42.55 on heavy volume. I guess I don't have to turn in my parole papers after all. Inco today announced quarterly earnings of .05c after a .12c charge for the strike. Doesn't seem very good to me, but I'm not an analyst. The tape told me the market liked the earnings (for now); let's see what tomorrow brings. Good two-way trade in the options with 676 contracts. Vol steady. (27.5,26.5)
(Alcan was up 2.85 to 53.25 after being up 4.10)
BCE: Bell continues to act poorly. Never much of a rally today even when the Dow was up 65; Bell set a recent low of 41.15, closing at 41.35. The Ag 42.5s remain bullet-proof with 250 wanted on the bid. Some slight sellers on the Ag 45s. I will be very glad when August 15 arrives. (25*,25*)
ABX: Barrick hasn't had third-billing for a long time, but it just isn't doing much to merit much attention. Nonetheless, I like the way the stock is acting, and the fact that the public wants to sell into every rally makes me like it even more. RBC client did buy 1000 Sp 30 puts, a sizable bet, but I still think ABX will see 32.50 before 30. That's what makes a market. Vol holding, but we may go down a touch on the calls if this selling continues. (33.5,33.5)
I heard a disturbing rumour that a number of the 'heavy hitters' in the TXF pit have already made plans to move to Montreal after the Sep expiry to trade on the ME. I don't know how much of this is just talk, but it certainly makes sense to me, unfortunately. A trader I know who was at a policy meeting last week approached Mr. Steve Rive, newly-appointed director of Derivatives at the TSE, and mentioned this to him, suggesting he do something like take a few of them out for lunch; tell them how much he appreciated their contributions to the market-place, that sort of thing. I was told that Rive went blank; stammering that he couldn't even talk to them until the "market model" was developed. Come to think of it, I can't remember ever seeing him on the trading floor during trading hours. Strong leadership and direction, eh? I suspect they're coming to realise that they're building a boat that won't float with this automation myopia.
Here's one last thought: if the ME isn't planning to dual-list the big options and continue with an auction market using the TSE's new bulletin board as the book, I'll eat my hat. And if they're not, after I finish my hat, I'll apply for the job of making it happen. The TSE will have its fancy new computer, the ME will say thank you very much and use it for free, conducting an auction for discovery, disclosure, and fairness, and every broker in Canada will have the fiduciary obligation to send it's orders to Montreal to try to get a better fill. Think about it. At the end of the day, what will the TSE have gained? Or rather, what will they have lost? Sadly, they probably don't care.
Happy trading.
Porter
CL: the answers are no, no, and no. The ME used to trade gold options, but I'm not sure it's still alive. AUX trades (I think) on Philly. Not sure aboout OGX. |
