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July 2, 2009 7:50 EDT
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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.
The Options News crew reports on Options Activity in Novellus and KLA-Tenor.
Options News Covers the CBOE SPX Volatility Index (VIX), Unemployment Situation, Options Activity in Novellus, KLA-Tenor and Pyle and Levy Money Show Workshop
July 2, 2009
On today’s Options News, Carrie Long and the www.ONN.tv team look at economic indicators today and Wednesday’s options action in the broader market, highlighted by a worse-than-expected non-farm payrolls but a better-than-expected unemployment rate. On Wednesday, the Dow rallied 57 points to 8,504 and the S&P climbed 4 points to 923.The CBOE SPX Volatility Index (VIX) dropped to 26 points as investors seemed more willing to take on more risk. We haven’t seen volatility levels of last summer, but the VIX remains well-below 30.
Early Market Indications
Ahead of the U.S. market open, the non-farm payroll drop drove S&P 500 futures down 10 points to 909, and international markets are down, with Hong Kong down 1% while Europe is up 0.8%.
Call Buyers in Novellus, KLA-Tenor
Bullish investors bought July 26 KLA-Tenor calls and July 17.5 Novellus calls on good news that China could increase demand in the semi-conductor space. More than 6,000 KLAC July 26 calls traded, and more than 11,100 NVLS July 17.5 calls traded on the day. NVLS shares closed at $17.44 after rallying to $17.70 intraday. KLAC shares rallied 56 cents to $25.81 on the day, but surged to $26.34 in midday trading. Bullish investors do not necessarily need KLAC and NVLS shares to rally, they just want the stocks to hold at their current levels. We’ve heard a lot of rumors that tech stocks could lead the U.S. out of the recession, and it looks like some investors could be convinced of the power of the PC.
Bullishness in Chesapeake
An investor sold more than 10,000 Oct. 17.5 puts around $1.30 right out of the gate yesterday without any big news from the company. SunTrust Banks recommended investors to buy CHK shares because it has a price target of $25. CHK shares closed at $19.67 yesterday, which is $5 higher than the price target. The investor needs CHK shares to expire higher than $16.20 in October to make money. The investor doesn’t seem to see much downside in the name and could be betting that CHK shares have more room to rally.
Meet Jud Pyle and Jared Levy at the Las Vegas Money Show from Aug. 2-4. Pyle and Levy will make their presentation on August 3 at 3:45 p.m., and they will be happy to answer all your pressing options and trading questions. They’ll meet you there!
For more breaking news and investment pointers on the options market, stay tuned in to www.ONN.tv.
