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Karla Yeh discusses options strategies in Newmont Mining Corp. (NEM), DryShips, Inc. (DRYS), and Chipotle Mexican Grill, Inc. (CMG).
DryShips (DRYS): We are seeing a bull call spread in DRYS today with the stock up 15 cents to $6.39. The January 7.5/9 bull call spread was bought 25,000 times for a net debit of 30 cents per spread. The company announced earnings at the end of October and beat analysts’ estimates by seven cents per share.
DRYS: $6.39 up $0.1500 or 2.40% volume: 6.47 million shares
Jan10 7.50 Calls: volume over 29574, trading last: $0.42 bid: $0.41 ask: $0.43 OI: 17971
Jan10 9.00 Calls: volume over 27375, trading last: $0.16 bid: $0.15 ask: $0.17 OI: 29458
Straddle: Nov09 6.00 trading $0.6250 price over strike: 10.4167%
Prev. Day Straddle: Nov09 6.00 trading $0.5350 price over strike: 8.9167%
BuyWrite: Jun10 7.00 Calls Yielding 20.19% call: $1.29
Prev. Day BuyWrite: Jun10 7.00 Calls Yielding 18.47% call: $1.18
Chipotle (CMG): With the stock trading about $1.00 higher, we are seeing about 2,500 short calendar spreads hit the tape. An investor is buying November 80-strike calls and selling December 80-strike calls, collecting a net credit of 20 cents. It is likely that a professional trader is taking on this relatively neutral position because they are probably long the stock.
SPDR S&P 500 ETF (SPY): The market is trending higher on improving economic data out of Asia, though we are seeing mixed sentiment across the market. Likely a light volume day due to Veterans’ Day.
SPY: $110.40 up $0.8100 or 0.74% volume: 18.43 million shares
Straddle: Nov09 110.00 trading $2.8050 price over strike: 2.5500%
Prev. Day Straddle: Nov09 110.00 trading $2.7450 price over strike: 2.4955%
BuyWrite: Jun10 111.00 Calls Yielding 6.32% call: $6.97
Prev. Day BuyWrite: Jun10 110.00 Calls Yielding 6.39% call: $7.05
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