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Textron and Visa reported better than expected earnings, but the market continues to the downside.
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.
TXT shares are now 85 cents to $18.82 this morning, after the company beat earnings per share expectations by a lot. The company also beat on revenues. The November 20 puts have crossed the tape 5,500 times for around $1.60. Now that earnings are out of the way, implied volatility has already come in. The November 19 straddle is trading for $1.88, or 9.9% of strike. The previous day November 20 straddle closed at $2.10.
TXT: $18.82 down $0.8500 or 4.32% volume: 1.39 million shares
Nov09 20.00 Puts: volume over 5549, trading last: $1.60 bid: $1.60 ask: $1.65 OI: 1817
Straddle: Nov09 19.00 trading $1.8750 price over strike: 9.8684%
Prev. Day Straddle: Nov09 20.00 trading $2.1000 price over strike: 10.5000%
BuyWrite: Mar10 19.00 Calls Yielding 12.35% call: $2.33
Prev. Day BuyWrite: Mar10 20.00 Calls Yielding 12.22% call: $2.30
V shares are seeing their highest point this session this morning, as they are rallying more than 4% to $76.94. The November 75 puts have traded 8,200 times for around $1.65 and the November 75 calls have traded 9,700 times for around $3.50. The earnings report also pushed implied volatility in, as the November 75 straddle is trading at $5.10, or 6.8% of strike, and the same straddle closed yesterday at $6.05.
V: $76.94 up $3.0401 or 4.11% volume: 7.88 million shares
Nov09 75.00 Puts: volume over 8289, trading last: $1.65 bid: $1.60 ask: $1.70 OI: 2301
Nov09 75.00 Calls: volume over 9749, trading last: $3.50 bid: $3.40 ask: $3.60 OI: 16936
Straddle: Nov09 75.00 trading $5.1000 price over strike: 6.8000%
Prev. Day Straddle: Nov09 75.00 trading $6.0500 price over strike: 8.0667%
BuyWrite: Mar10 80.00 Calls Yielding 6.43% call: $4.95
Prev. Day BuyWrite: Mar10 75.00 Calls Yielding 7.54% call: $5.80
The SPY is currently trading down 66 cents to $1.05.76. The November 106 straddle is trading at $4.92, or 4.6% of strike, compared to yesterday’s straddle that closed at $4.91. The slight down-tick in the market has kept implied volatility relatively unchanged during morning trading.
SPY: $105.76 down $0.6616 or 0.62% volume: 57.36 million shares
Straddle: Nov09 106.00 trading $4.9200 price over strike: 4.6415%
Prev. Day Straddle: Nov09 106.00 trading $4.9100 price over strike: 4.6321%
BuyWrite: Mar10 106.00 Calls Yielding 5.39% call: $5.70
Prev. Day BuyWrite: Mar10 107.00 Calls Yielding 5.18% call: $5.47
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