We are up on nice volume this morning. First hour traded 132,000 on the NAZ. One 10 K block , one 8K block , Bunch of 6K 7K blocks.
For you options traders a good strategy would be to buy the Jan 5 calls at 1.50, sell the Jan 5 puts for 4.00. So you have a positive cash flow of 2.50. If the stock goes to 5.00 you lose 2.50 per share, stays at 6.00 you lose 50 cents. At 8.00 you clear 5.00 , and at 10 you clear 7.50 per share. Actually, it would be better to do the options strategy rather than own the stock if you are a bull. You are about doubling the downside risk but doubling or tripling the upside potential. Basically, the calls are cheap and so are the puts, so the market is saying the stock will stay the same, and if it does the strategy will break even and you haven't lost anything........gregor |
