Stocks vs. Options: Which generates better returns?
Plug in your stock idea to find options trades offering a potentially better ROI.
NEW TO OPTIONS?
Visit our New to Options page to learn more.
Find out more »
Jud Pyle discusses options action in KLA-Tencor Corporation (KLAC) and Palm, Inc. (PALM)
Jud Pyle is the Chief Investment Strategist for Options News Network. After four years with SBC Warburg, he joined PEAK6 Investments as an equity options trader and chief risk officer. August 13, 2009 10:07 EDT Related Symbols: KLAC
KLA-Tencor (KLAC) News: Nothing newsworthy of note. KLAC shares are down almost have a percent today to $30.92. An investor is evidently trading a one-by-two strategy today, with 2,000 of the January 32 calls being purchased for $2.60 and selling 4,000 of the January 36 calls for $1.30. This is bearish in the near term but moderately bullish in the longer term through January expiration.
KLAC: $30.92 down $0.1400 or 0.45% volume: 0.67 million shares
Jan10 36.00 Calls: volume over 4052, trading last: $1.35 bid: $1.30 ask: $1.45 OI: 68
Straddle: Aug09 31.00 trading $1.4250 price over strike: 4.5968%
Prev. Day Straddle: Aug09 31.00 trading $1.5000 price over strike: 4.8387%
BuyWrite: Jan10 31.00 Calls Yielding 10.51% call: $3.25
Prev. Day BuyWrite: Jan10 32.00 Calls Yielding 9.06% call: $2.80
Palm (PALM) News: Morgan Joseph has downgraded PALM to “sell” from “hold” with a price target of $7.50. Elsewhere, Collins Stewart said Palm Pre momentum has already peaked, and weakening demand has resulted in pre-production levels being cut by half a million units. Despite this news, PALM is up 3% to $13.23. Roughly 10,000 out-of-the-money September 17 calls were bought for 20 cents each. Open interest is about 4,000, which means much of this volume is likely to translate as new positions.
PALM: $13.23 up $0.3900 or 3.04% volume: 7.59 million shares
Sep09 17.00 Calls: volume over 10056, trading last: $0.21 bid: $0.15 ask: $0.25 OI: 4178
Straddle: Aug09 12.50 trading $1.3750 price over strike: 11.0000%
Prev. Day Straddle: Aug09 12.50 trading $1.2500 price over strike: 10.0000%
BuyWrite: Jan10 14.00 Calls Yielding 15.87% call: $2.10
Prev. Day BuyWrite: Jan10 14.00 Calls Yielding 14.74% call: $1.95
Two Traders, One Strategy Steve and Jared take a look at risk management strategies on the OH platform.
Navigating OptionsHouse Get to know the OH platform and all the tools you have at your disposal.