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Jud Pyle bullish options activity in the S&P 500 ETF (SPY), Genworth Financial Inc. (GNW), and Chesapeake Energy Corporation (CHK).
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.
SPDR S&P 500 ETF (SPY) News: The bond market is closed today for the Columbus Day holiday, which is making overall trading relatively light. The SPY is up about 74 cents today, or 0.7%, putting the bulls in control. The November 108 straddle is trading for about $6.00; the November 107 straddle closed at $6.14 on Friday.
SPY: $108.00 up $0.7400 or 0.69% volume: 25.23 million shares
Straddle: Nov09 108.00 trading $5.9900 price over strike: 5.5463%
Prev. Day Straddle: Nov09 107.00 trading $6.1350 price over strike: 5.7336%
BuyWrite: Mar10 109.00 Calls Yielding 5.14% call: $5.55
Prev. Day BuyWrite: Mar10 108.00 Calls Yielding 5.35% call: $5.78
Genworth Financial (GNW) News: We are seeing put buyers at the November 10 put strike, with about 8,000 options trading versus open interest of 2,831. These are being bought to open at about 45 cents each. The stock is up five cents to $11.91. The November 12 straddle is trading at $2.30, or 19% of strike. November is the earnings month, with numbers due on or around November 5.
GNW: $11.91 up $0.0510 or 0.43% volume: 1.57 million shares
Nov09 10.00 Puts: volume over 8050, trading last: $0.45 bid: $0.45 ask: $0.50 OI: 2831
Straddle: Nov09 12.00 trading $2.3000 price over strike: 19.1667%
Prev. Day Straddle: Nov09 12.00 trading $2.3000 price over strike: 19.1667%
BuyWrite: Mar10 12.00 Calls Yielding 19.94% call: $2.38
Prev. Day BuyWrite: Mar10 12.00 Calls Yielding 19.10% call: $2.28
Chesapeake Energy (CHK) News: The April 35 calls are being bought to open today, with about 10,000 contracts trading at around $2.05 each. CHK shares are up 43 cents today, or 1.5% to $29.09. Commodity stocks are seeing a bit of a continued rally today. This follows up on last week’s activity, when we also saw call buying in CHK.
CHK: $29.09 up $0.4300 or 1.50% volume: 2.80 million shares
Apr10 35.00 Calls: volume over 10002, trading last: $2.02 bid: $2.00 ask: $2.10 OI: 20517
Nov09 30.00 Calls: volume over 7596, trading last: $1.60 bid: $1.55 ask: $1.65 OI: 9072
Straddle: Nov09 29.00 trading $4.0500 price over strike: 13.9655%
Prev. Day Straddle: Nov09 29.00 trading $4.1500 price over strike: 14.3103%
BuyWrite: Apr10 30.00 Calls Yielding 13.06% call: $3.80
Prev. Day BuyWrite: Apr10 29.00 Calls Yielding 13.75% call: $4.00
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