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Strategies & Market Trends : Canadian Options -- Ignore unavailable to you. Want to Upgrade?

To: Jan Johnstone who wrote (741)	11/5/1997 7:46:00 PM
From: Porter Davis	Read Replies (1) \| Respond to of 1598

Options update for 5 Nov...Ouch! Jan, that hurts! >Porter, the Canadian options scene is pathetically anemic, unless you >deal with TXO, or one of the Banks. Needless to say, thin volume is >unattractive for trading. OK, TXO, the banks...might I add NNC, NTL, ABX, PDG, BCE, AC, NVA, and some more that I'm probably going to get killed for forgetting? So we have a least a dozen quality option classes with another ten or so not far behind, and those that have their moments of action. Remember Bre-X? Once it got started, it was one of the most liquid and actively traded options I have seen. Anywhere. (ex, of course OEX). Thin volume is unattractive for us as well...it's not a hobby or diversion for us, it's what we depend on to make a living. Everyone thinks the US markets are far superior, but using the 10X factor, they don't have proportionately more 'quality' issues than we do. On the inter-listed issues I deal in, we beat their markets hands-down in spreads and liquidity. I don't mean to vent, but 'pathetically anemic' is strong mojo. BCE: Bell put on a nice little rally today. It caught me by surprise; I sold way too early but recovered a little as it kept going. Sellers started to appear, which brought our call vol down a snick, but they were net losers on the day. I hope Bell continues this move...I'm looking for something over $43. Keep a weather eye on Dave's bell-cow, Nortel, up a smooth $4.60 today. (28.5,25) ABX: A real yawner today. We lowered the call vol a point, mostly out of boredom. Gold will have to provide more leadership before the gold stocks put on a move. (39,35) N: Just when you thought it couldn't go any lower, surprise! Ex-div today. Retail still buying calls and selling puts, looking for a bottom. It will come, but who knows when? An interesting play put on today by either an upstairs pro or an institutional type...sold 250 Nov 27.5 puts and 500 Nov 30 calls opening. At least it'll be fun watching how he makes out. (38,35) BLD: (Drumroll, please)...a trade! One contract. Well, a journey of the longest distance begins with one step. And here I thought the reason no one was trading our options was that they were perfectly priced--people were unwilling to pay the steep premiums but also afraid to sell them. I've had a little fun trading Ballard stock, just to get a feel for it. Believe me, you don't want to buy some and then go out for a smoke or to get lunch. This puppy moves. (72,72) <===not a typo. Well, I'm approaching maximum bandwidth (again) so I'll leave it at that. I still can't shake the feeling that investors are a little too complacent (and relieved) that a week ago Monday is behind them. Is this the calm before another storm? Happy trading. Porter