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September 23, 2009 8:29 EDT Related Symbols: RIMM
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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 Carrie Long.
ONN brings you the morning update, and options activity in Research in Motion (RIMM).
On today’s Option News, host Carrie Long and the ONN.tv crew look at Wednesday’s pre-market action, highlighted by relatively unchanged S&P 500 futures ahead of the Federal Open Market Committee’s (FOMC) minutes and announcement of the status of U.S. economic recovery due at 2:15 p.m. EST. On Tuesday night, the Dow closed up 52 points to 9,832 and the S&P 500 rallied seven points to 1,071. The SPX CBOE Volatility Index (VIX) dropped one points to 23.1, suggesting implied volatility is taking a breather after Monday’s sell-off.
Early Market Indications
Ahead of the opening bell Wednesday, S&P 500 futures are up nearly three points to 1,070. International markets are mixed, with Hong Kong trading down 0.5% and Europe trading up 0.5%.
Mixed Options Sides in Research in Motion
Research in Motion (RIMM) has seen its fair share of option volume, but during the last few weeks investors have shown both bull and bear plays. On Tuesday, we saw sellers of the Nov. 105 and 120 calls. One investors sold these spreads 7,000 times while another traded them 10,000 times. However, during the last few weeks we’ve seen significant call buying in RIMM in anticipation of the company’s earnings report tomorrow night. RIMM shares have been relatively quiet, but it looks like investors expect to see a spike in implied volatility going forward. That makes Market Analyst Kevin Cook bullish on RIMM with a target of the stock’s June highs at $86.
ONN.tv’s Wednesday Webinar series continues today at 4:30 p.m. EST. Kevin Cook and Larissa Miller introduce put-call parity and strategies for increasing returns on your trades. Don’t forget to tune in tomorrow at 12 p.m. EST for a live session where ONN.tv shows you the ropes in put-call parity in real time.
For more options news and investment pointers, be sure to tune in everyday to Options News on ONN.tv.
