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September 24, 2009 8:28 EDT Related Symbols: MT
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OptionsNews
An ahead-of-the-bell look at the market's biggest stories and a review of unusual options activity. Filled with smart market analysis from the ONN.tv team, "Options News" turns the market's top headlines into trading intelligence, hosted by Karla Yeh.
Heavy call buying action in Arcelor Mittal boosts implied volatility of the options the same day the FED stays the course.
Call Buying in Arcelor Mittal
Heavy call buying action in Arcelor Mittal boosts implied volatility of the options the same day the FED stays the course.
On today’s Options News, Carrie Long and the www.ONN.tv team look at Thursday’s pre-market price action in the broader market, highlighted by initial jobless claims clocking in at 530,000, beating expectations by 20,000 applications. On Wednesday, the Dow dropped 81 points to 9,748, and the S&P 500 fell 11 points to 1,061. The CBOE SPX Volatility Index (VIX) popped up 0.5 point to 23.5, spiking into positive territory as the closing bell approached.
Early Market Indications
Ahead of the U.S. market open, S&P 500 futures are up 0.75 point to 1,060. International markets are down, with Hong Kong down 2.5% and Europe down 0.2%.
Heavy Call Buying in Arcelor Mittal, FED Stays Course
Heavy call volume hit the tape in Arcelor Mittal (MT) as buyers of the Oct. 44 calls boosted volume to 13,000 during the first 30 minutes of trading Wednesday. Implied volatility of these calls grew to 50 from 43 yesterday, meaning this could also be a stock replacement strategy. The Federal Reserve Bank stayed the course, meaning the banks will remain in the sweet spot. We’ve seen protective options actions in regional banks like M&T (MTB) and BB&T (BBT).
ONN.tv continues its Webinar series this afternoon at 12 p.m. eastern. Join Kevin Cook and Larissa Miller for a live, real-time trading introduction to put-call parity. Be sure to sign up now – spots fill up quickly!
For more breaking news and investment pointers on the options market, stay tuned in to ONN.tv.
