Options changes for the day - Sept 30 calls increased. Big increases in both Sept 35 calls and Sept 30 puts. Big decrease in sept puts above 40.
Conclusions: They guys who bought puts along time ago with high strike prices are starting to cash out. There also are people who think the bottom has been reached and like me are expecting a rally this week, so they have bought Sept 30 and 35 calls (I bought stock, myself). The increase in Sept 30 puts is probably from people buying insurance again a continuation of the drop.
The effect is to diminish the power of the options push, but the push is still towards 40 because there are still about 14,000 each of the Sept 35 and Sept 40 puts out, and 11,000 puts above 40. These should close out soon with a positive effect on the price. If the Sept 35 numbers continue to increase, and the upper puts continue to decrease its possible that the picture may change to 35 by Friday, but right now it still looks like 40 to me. Alot will depend on todays action.
Also, due to the extremely high number of overall options outstanding, expect continued extreme volitility as the options writers react. When the stock moves up, they will have to buy shares, when it moves down, they will have to sell, and the volumes will be high in both directions.
Good luck,
Carl |
