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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.
Oracle shares are headed higher, and investors could buy high delta calls or sell put spreads to prepare.
On today’s Options News, Carrie Long and the ONN.tv team cover the CBOE SPX Volatility Index (VIX), which popped up 0.8 point to 23.7 following the jobless claims report that left the market in the red on Thursday. The VIX reached a high around the 25-mark yesterday, but investors seem to continue to sell volatility in the near-term.
The GDP report quarter-over-quarter showed a 5.7% advance compared to estimates of 4.5%.
Shares of Oracle (NASDAQ: ORCL) closed at $23.47, and the stock could climb even higher after its potential deal to acquire Sun Microsystems. Option investors could play this news using two possible strategies, according to Chief Investment Strategist Jud Pyle: Buy high delta calls or sell put spreads. Investors could buy the January 2011 15 calls for $9, or sell the June 24-15 put spread for $1.80.
For more breaking news and investment pointers on the options market, stay tuned in to ONN.tv.
