Options update for Wednesday Jan 29:
Gold stocks closed strongly despite the drop
in bullion. Option activity was muted in ABX
although there was small buying of puts by
Greenline custies closing out. Volitility
held steady at 33/31 calls/puts.
BCE vol edged upward in sympathy with strong
bids in US option markets (it's listed on
Philly and P-coast). This stock has had
great moves and with it's extremely low
vol, I can't believe more people don't buy
premium.
INCO continues to be a non-event. Burns
crossed something like 700 May 45 calls.
No read on what they're up to. McLeod had
a big offering on May 47.4s but killed it.
Vol 27.5/26.
If anybody finds this useful, I will
continue to post it intermittently.
Btw, thank you to all who haved written
the TSE regarding their proposed changes.
I was contacted today by various members
of management asking how I was generating
the traffic they are receiving. I guess
running an exchange doesn't mean you have
to know about things like "Canadian Options"
or listening to the real 'end-users' of
their product--you. (I know that is a strong
statement, but I stand by it.) Anyway, I'm
sure they will start to "spin" their side,
but don't forget the facts: they issued a 60-
page "blueprint" which would abolish client
priority, remove the bulk of the liquidity
we still have (specialists and COT's), and
one I haven't mentioned yet--you'll love it:
Something like half of all series will be
on a "Request-for-Quote" basis. These series
will not be continually quoted, if you want
to know their price (or maybe even trade it!),
your broker will have to send a RFQ to the
floor, and then we're supposed to put up a
quote for five minutes. This is progress?
Yes, I am a specialist...but it is not for my
own interest that I am fighting the exchange.
My livelihood depends on customers who trade
in my stocks, are treated fairly, and have
access to prices that are established by an
auction process as all major North American
exchanges use. It's called disclosure, which
is another way of saying fairness.
If you have any questions or comments on the
exchange's planned changes to the derivative
market, I urge you to contact Ms. Susan Crocker,
VP <scrocker@tse.com>, and please CC:redtop@
interlog.com. That's me. I understand the
knives are being sharpened with my back in
mind. I'd just like the comfort of copies of
posts that may (or maybe not) support my
position. It's just a question of fairness
for all market participants.
Thanks,
Porter |
