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The market edges up during morning trading, while investor sells Valero calls, buys J.P. Morgan puts
Karla hosts and produces Options News and Mad About Options, and writes the Sidewinder report. Karla graduated from Colgate University, where she majored in English and Film and Media Studies.
Pending homes sales climbed 1% in December, and the better-than-expected news boosted the S&P 500 SPDRs (SPY) 84 cents to $109.90. The February 110 straddle is currently priced at $3.58, compared to the 109 straddle that closed yesterday at $3.87.
Valero Energy Corp. (NYSE: VLO) did not announce any news today, and the stock dropped 26 cents to $18.90 during the first hour of trading. The January 2011 15 calls traded 6,000 times out of the gate, thanks to an investor who sold these options.
J.P. Morgan Chase & Co. (NYSE: JPM) shares climbed 49 cents to $40.12 following news that Federal Reserve Chairman Paul Volcker is expected to testify on the future of proprietary trading in U.S. banks at 2:30 p.m. EST. The January 2011 30 puts crossed more than 20,000 times out of the gate thanks to a seller, and we saw a buyer of the January 2011 45 calls, which traded 9,500 times.
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