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Disappointing housing and personal income figures is putting pressure on the SPY.
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.
The SPDRs (SPY) is currently trading at $111.63, down 10 cents this morning, following lower than expected home sales and personal income and spending reports. The January 112 straddle traded at $3.65 during the first hour of trading, compared to the same straddle that closed at $3.60 the previous day.
Pulte Homes (PHM) did not report any news this morning, but the stock is up 14 cents to $10 despite the worse than expected home sale report. The February 10 calls crossed the tape more than 5,900 times during the first hour of trading, and it looks like an investor bought these options calling for slight upside. While these calls are at-the-money, it’s interesting that at least one investor is calling for upside with a mixed home building sector during today’s trading session.
CVS Caremark (CVS) did not announce any news, but the down traded down 22 cents to $32.09 during the first hour of trading. The company could report earnings figures sometime around Feb. 18. The January 33 calls crossed the tape 3,200 times, and we saw several blocks trade at the bid price – indicating selling action. The January 32 straddle is trading at $1.68, compared to the same straddle that closed yesterday at $1.72, suggesting implied volatility is coming in due to selling activity.
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