Options Block Episode 46
Trading Block: Mixed trading day until finally closing down. AT&T-Mobile boosts telecom sector. Consumer, personal spending and existing home sales all up. Energies pull back, commodities quiet.
Odd Block: Hartford Financial Services group (HIG) April calls trade heavily with a 35:1 call/put ratio. Limelight Networks (LLNW) trades at 6x ADV on Facebook streaming rumors, boasts a 49:1 call/put ratio. Energy Select SPDR (XLE): Bearish activity causes 11:1 put/call ratio. Eastman-Kodak (EK) patent lawsuits look more favorable to EK, pushing up trading in the April 4 calls.
Xpress Block: Liquidation of long call positions in April and May SLV, GLD. Repositioning for mre upside. Futures traders and shorter term swing traders more active than usual. Trading VIX futures….or not.
Strategy Block: Looking at the pros and cons of 4 portfolio/stock hedging methods:
1) Put spreads as a hedge, 2) Buying put options, 3) Futures, and 4) VIX.
Around the Block: Economic data coming up: consumer confidence, crude inventories, non-farm payrolls. Crude hoarding? Contango! Looking at the 50 DMA on S&P 500 and AAPL. Will they hold?