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Jared Levy discusses Costco Wholesale Corporation (COST), Yamana Gold, Inc. (AUY), and Range Resources Corp. (RRC).
Jared Levy worked as a stock broker and market maker at three major U.S. exchanges and as a specialist for Fortune 1000 companies. He won an Emmy for his Wizetrade daily trader-cast videos.
Costco Wholesale Corp. (COST) News: We are seeing call buying on the October 60 strike. More than 8,200 contracts have traded around 15 cents each versus open interest of 10,000. This could be someone buying to close or banking on a quick move higher ahead of expiration on Friday. Volume is light on the stock itself, which is relatively unchanged today.
Yamaha Gold (AUY) News: It looks as though a short condor is being traded here. The January 10 and 17 calls are being sold and the January 12 and 15 calls are being purchased. The seller collected about $1.00 for the entire spread, which traded 5,000 times. This means the investor is expecting a move in AUY ahead of January expiration. Volatility is holding tight, with little movement in the November at-the-money straddle.
Range Res Corp. (RRC) News: Option traders are selling the October 50 put, which has seen volume of 5,700 on open interest of 7,421. This may be someone closing out their long positions.
COST: $58.17 up $0.1450 or 0.25% volume: 0.40 million shares
Oct09 60.00 Call: volume over 8212, trading last: $0.15 bid: $0.10 ask: $0.20 OI: 10465
Straddle: Nov09 57.50 trading $3.7750 price over strike: 6.5652%
Prev. Day Straddle: Nov09 57.50 trading $3.7500 price over strike: 6.5217%
BuyWrite: Apr10 60.00 Calls Yielding 6.19% call: $3.60
Prev. Day BuyWrite: Apr10 60.00 Calls Yielding 5.93% call: $3.45
AUY: $12.21 up $0.0100 or 0.08% volume: 4.86 million shares
Jan10 17.50 Calls: volume over 5000, trading last: $0.30 bid: $0.25 ask: $0.35 OI: 8952
Straddle: Nov09 12.00 trading $1.8750 price over strike: 15.6250%
Prev. Day Straddle: Nov09 12.00 trading $1.9000 price over strike: 15.8333%
BuyWrite: Apr10 13.00 Calls Yielding 13.92% call: $1.70
Prev. Day BuyWrite: Apr10 13.00 Calls Yielding 13.92% call: $1.70
RRC: $52.67 down $0.6900 or 1.29% volume: 0.44 million shares
Oct09 50.00 Put: volume over 5700, trading last: $0.30 bid: $0.25 ask: $0.35 OI: 7421
Straddle: Nov09 52.50 trading $6.1500 price over strike: 11.7143%
Prev. Day Straddle: Nov09 52.50 trading $6.2000 price over strike: 11.8095%
BuyWrite: Mar10 55.00 Calls Yielding 9.40% call: $4.95
Prev. Day BuyWrite: Mar10 55.00 Calls Yielding 9.68% call: $5.10
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