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10 Ways Options News Can Improve Your Stock Trades

Risk Reversal in EMC Following Joint Venture Plans

November 12, 2009 9:30 EST Related Symbols: , ,

you're watching: OptionsNews
What's 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.

In This Episode

An investor put on a risk reversal in the data storage devices after the company publicly announced a joint venture with Cisco.

On today’s Options News, Carrie Long and the www.ONN.tv team report a drop in jobless claims throughout last week to 502,000 initial claims. Despite the rally in the market, the CBOE SPX Volatility Index (VIX) popped up to 23.

Risk Reversal in EMC

www.ONN.tv Senior Derivatives Specialist Jared Levy analyzes a risk reversal put on by a moderately bearish investor on EMC (EMC). The investor bought the risk reversal 20,000 times and sold the January 2010 17.5 calls to buy the January 2010 17.5 puts for 35 cents per spread. The stock was trading at $17.20 per share at the time of this trade. More than 21,600 January 17.5 calls changed hands versus open interest of 33,000, and 20,900 of the January 17.5 puts crossed the tape versus open interest of 9,256. EMC and Cisco publicly announced plans for a joint venture, and ONN.tv will keep you up to date on interesting options activity as the joint venture plans continue.

ONN.tv continues its webinar series today at 12 p.m. EST for a live sessions on butterfly spreads. Jared Levy will be on hand to answer questions and show strategies in real-time. Sign up by clicking on the webinars tab at www.ONN.tv to reserve your seat. Sign up now – spots fill up quickly!

For more breaking news and investment pointers on the options market, stay tuned in to ONN.tv.