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Bearishness in Zion, bullishness in Macy’s as market drops

Jobless claims put pressure on the market, Zion resurfaces, investors react to Macy’s sales report

  • Headshot of Karla Yeh Karla hosts and produces Options News and Mad About Options, and writes the Sidewinder report. Karla graduated from Colgate University, where she majored in English and Film and Media Studies.

by Karla Yeh February 4, 2010 11:31 EST Related Symbols: , ,

The S&P 500 SPDRs (SPY) dropped $2, or roughly 2%, to $107.76 during the first hour of trading, and the February 108 straddle is priced at $3.96, compared to the 110-straddle that closed yesterday at $3.41.

Zion Bancorp (NASDAQ: ZION) shares dropped 78 cents, or more than 4%, to $17.84 during the first hour of trading. We saw a call spread buyer yesterday, but this morning the February 16 puts crossed 20,000 times thanks to a seller closing out a bearish position.

Macy’s (NYSE: M) could announce earnings around Feb. 23, and the company’s January comparable sales climbed 3.4% compared to estimates of -0.1%. The stock climbed 27 cents to $16.51, and an investor bought the may 20-17 one-by-two call spread on a moderately bullish bet.

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