Now, if SCH drops 15 points post haste, my crystal ball says we're going to see some heavy volume on those June options in the lower strikes. We're getting some help with negative news on the bankers and brokers, the GS IPO will be a done deal, and the bond market is crater city. I'm not optimistic about any big stock drops, after seeing the stellar recovery the market made today, but I'm hopeful anyways. In my opinion, there has to be heavy downside in the first two weeks of May, or else the lower strikes are going no bid forever. Once we hit May expiration, anything June 30 points out of the money is toast.
The big bears had the bulls on the ropes today. Had them covering while a flurry of punches were being delivered...head shot....body shot....head shot. But the bulls answered back, knowing the party plans for the Goldman Sachs IPO were on the line right then and there, they came back swinging! Big engulfing bear and dark cloud on the Dow right now, I bet they come out monday with both guns blazing, get the printing presses buzzing, ramp the spoos, get those buy programs going first thing! Remember those GS people have friends in high places at the Treasury dept! |
