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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.
Kroger’s earnings miss and declining McDonald’s sales sparked selling pressure in the shares on Tuesday.
On today’s Options News, Carrie Long and the www.ONN.tv team cover the CBOE SPX Volatility Index (VIX), which climbed more than 7% on the day Tuesday to 23.7. We could see implied volatility make more moves following jobs and retail data due out Thursday and Friday.
Kroger, McDonald’s Gap Down on Consumer Strength Doubts
ONN.tv Senior Derivatives Strategist Jared Levy provides insight into Kroger (KR) and McDonald’s (MCD) options activity in the wake of earnings season. In Kroger, we saw an investor buy 15,000 January 2011 20 calls for $2.50 following the company’s worse-than-expected earnings before the market opened yesterday. The grocery company’s shares closed down 12% to $20.12.
Turning to MCD, the fast-food name could announce earnings sometime around Jan. 26, and the shares closed down $1.44, or more than 2%, to $60.49. The gap down in MCD started after the company posted a fractional increase in its global comparable sales for November. These statistics beg the question: Is the consumer not as strong as the market thought?
For more breaking news and investment pointers on the options market, stay tuned in to ONN.tv.
