The Market Is Tanking!

Now this is a real sell off! The major market averages are lower, approaching a 2% drop. Consumer sentiment is moving lower, according to the University of Michigan survey, and the selling has gained momentum. No real panic in the SPX index pit according to my pit crew, however, as traders may be unwilling to reach for long option positions going into a weekend! As always though, there is action on the OptionsHouse hotlist!

Casino developer, owner, and operator Las Vegas Sands (LVS) has completed the financing required to begin construction projects again in Macau. This was expected, but the stock is down 5% in today’s weak tape. Options action is heavy today with 90,000 contracts trading. The option chain is picking up more than 15,000 September 14 calls and September 12.5 puts trading today. This action is very mixed, trading electronically on the bid and offer side. This points out the future course of LVS is definitely anyone’s guess.

Amgen (AMGN) also showed up on the Hotlist today. The decision from the FDA panel is out with a unanimous approval of Prolia becoming commercially available and volatility is lower. Meanwhile, 68,000 contracts have traded and my source is highlighting a buyer of the September 65 calls, possibly looking for a future move to the upside in Amgen. The risk to an outright call buy is 100% of the premium paid (in this case 60 cents) if the stock doesn’t move higher in the next 35 days. The reward is participation in the upside should the market break out above 65.6.

And that’s what’s hot! Thanks for tuning in and check out the Hotlist every day. And remember in fast markets, fast matters!