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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.
CVS shares dropped significantly following the company’s disappointing earnings announcement, and at least one investor called for limited volatility.
On today’s Options News, Karla Yeh and the www.ONN.tv team look at Monday’s pre-market price action in the broader market. Ahead of the opening bell this morning, S&P 500 futures are skyrocketing, up more than 10 points, to 1,076 as the market could continue its week-long rally going into today’s open.
At the close Friday, the Dow rallied 17 points to 10,023 and the S&P 500 gained just three points to 1,069. The CBOE SPX Volatility Index (VIX) dropped one point to 24,2.
Early Market Indications
Ahead of the U.S. market open, S&P 500 futures are up 10.25 to 1,076. Overseas, Hong Kong gained and Europe are up 1.7% the morning.
Options Action in CVS Caremark
www.ONN.tv Chief Investment Strategist Jud Pyle reviews option activity in CVS Caremark (CVS). CVS announced earnings last week, and lowered its guidance for the pharmacy benefit business. An investor sold the December 30 straddle 5,500 times and collected $2.81 per straddle. This investor is banking on little volatility in CVS throughout the next month, and will make maximum profit if the stock closes exactly at $30 at December expiration.
ONN.tv continues its webinar series this Wednesday 4:30 p.m. Eastern Time. Tune in for an in-depth look at the Butterfly Spread strategy and learn how to best use these limited-risk strategies that look for limited movement in the underlying. 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.
