Market Edges Up Despite Disappointed Consumers

The SPY is relatively unchanged, but edging up slightly, this morning to $109.04. The stock advanced after the trade data, but we’ll have to see how they perform after consumer sentiment unexpectedly dropped last month. The November 109 straddle is trading at $2.51, or 2.3% of strike, compared to yesterday’s straddle that closed at $2.69.

 Dow Chemical (DOW) saw its shares rise 26 cents to $28.86 this morning, and the March 2010 35 calls have traded 4,500 times. The delta of these calls is 29, and the options have gained 15 cents. Call buyers could have boosted the price of these March-strike options. DOW held its investor day meeting yesterday and raised its earnings expectations, resulting in Credit Suisse’s target price raise this morning to $39 from $32.

 Interesting options action also hit the tape in the Powershares Dollar Bullish ETF (UUP), for those investors bullish on the U.S. dollar, a an investor rolled out a long position into the out-month. As the ETF provider attempts to issue more shares, we saw the November 23 calls trade 22,000 times and the December 23 calls trade 35,000 times. It looks like an investor sold the November position to buy the December calls.