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October 27, 2009 9:30 EDT Related Symbols: MRK
you're watching:
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.
An investor rolls long position into later-dated series to capitalize on stock movement.
On today’s Options News, Karla Yeh and the ONN.tv team look at Tuesday’s pre-market price action in the broader market, highlighted by futures edging up ahead of the consumer sentiment report that should show a slight improvement throughout September.
At the close Monday, the Dow dropped 104 points to 9,867, and the S&P 500 closed down 13 points to 1,067. The VIX popped climbed 10% to 24.5 on the down-market day, reaching its early-October levels.
Early Market Indications
Ahead of the U.S. market open, S&P 500 futures are up 1.25 to 1,068. Hong Kong is up 1.8% and Europe is up 0.5%.
Betting on More Movement in Merck & Co.
Healthcare name Merck & Co. Inc. (MRK) could see more movement to the upside during the next month; at least one investor is betting on it. The investor rolled a long position, selling to close 11,000 November 34 calls to buy the same number of December 34 calls. The investor paid 30 cents for this trade. MRK shares are trading 52% higher than their March lows of $20.99, and at least one investor is looking for further upside from yesterday’s close at $32.03.
ONN.tv continues its webinar series tomorrow at 4:30 p.m. EST. Learn how you can make volatility swings work for you with Jared Levy and Jud Pyle. 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.
