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After several down-market days, the SPY is ticking up, and CVS and Human Genome Sciences are following suit.
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.
HGSI shares are up $1.47, or 8%, to $19.48 this morning. The November 25 calls have traded 15,000 times for around $1.85. The November 19 straddle is trading at $8.70, or 45% of strike, compared to the November 18 straddle that closed yesterday at $8.90. This shows investors expect implied volatility to come in slightly, but the stock is poised to move big-time throughout the next couple weeks. The stock broke through its 52-week high of $19.30 this morning as J.P. Morgan upgrades the company to overweight from neutral.
HGSI: $19.48 up $1.4700 or 8.16% volume: 3.54 million shares
Nov09 25.00 Calls: volume over 15172, trading last: $1.85 bid: $1.80 ask: $1.95 OI: 42431
Straddle: Nov09 19.00 trading $8.7000 price over strike: 45.7895%
Prev. Day Straddle: Nov09 18.00 trading $8.9000 price over strike: 49.4444%
BuyWrite: Apr10 20.00 Calls Yielding 28.23% call: $5.50
Prev. Day BuyWrite: Apr10 19.00 Calls Yielding 25.67% call: $5.00
CVS shares are rallying 37 cents to $35.98, and the company did not announce any news. The February 40-strike calls have traded 3,300 times for around 75 cents. The November 36 straddle is trading at $2.15, or 6% of strike, compared to yesterday’s straddle that closed at $2.25. The company is scheduled to announce earnings figures on November 5 before the market opens.
CVS: $35.98 up $0.3700 or 1.04% volume: 1.81 million shares _CVS caremark (CVS): Next earnings on Nov. 5 BMO confirmed. 52-WEEK HIGH: 38.27. 52-WEEK LOW: 23.19. NOT SEEING ANYTHING.
Feb10 40.00 Calls: volume over 3273, trading last: $0.75 bid: $0.70 ask: $0.85 OI: 1099
Straddle: Nov09 36.00 trading $2.1500 price over strike: 5.9722%
Prev. Day Straddle: Nov09 36.00 trading $2.2500 price over strike: 6.2500%
BuyWrite: May10 36.00 Calls Yielding 8.48% call: $3.05
Prev. Day BuyWrite: May10 36.00 Calls Yielding 7.99% call: $2.88
The SPY is currently trading up $1.19, or 1.1%, to $105.60. We’ve seen a well-off throughout the week, but it looks like the better-than-expected GDP report could bring the market back into the green. The November 106 straddle is trading at $.76, or 4.5% of strike, and the previous day straddle, the November 104 straddle, closed at $5.40, or 5.2% of strike.
SPY: $105.60 up $1.1900 or 1.14% volume: 47.82 million shares
Straddle: Nov09 106.00 trading $4.7600 price over strike: 4.4906%
Prev. Day Straddle: Nov09 104.00 trading $5.3950 price over strike: 5.1875%
BuyWrite: Jun10 106.00 Calls Yielding 6.87% call: $7.25
Prev. Day BuyWrite: Mar10 105.00 Calls Yielding 5.35% call: $5.65
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