AI
Wednesday, June 18, 2014 12:18:26 PM
YHOO options revisit...
June contracts seeing not much activity. They are done on Friday anyway so there is nothing there.
July is seeing heavy put buying in the 30, 34 and 35 strikes. Looks like some short term hedging and some swing trading going on here. I have no interest in July puts at this point and I don't see it as anything bearish longer term.
Further out the August and October contracts are seeing more call buying than put buying. Clearly the outlook is longer term and that should be the focus. With IV's in the 30's and with the price pullback, those Oct 40 calls have come in nicely and represent a low risk entry to the IPO play. The 38 calls, however, may offer a better opportunity for a low risk entry that is not too far OTM when playing the October calls. There should be some swing play round trip opportunities as well.
Right here I'm liking the Oct 38 calls the best. If you want to plat at the money then consider the August contracts. IV's are not too high and there is no need to spread. RSI(5) has reached oversold. CCI(18) not quite but close. Too early for a signal yet, but probably not too early for an entry unless Mrs. Doubtfire craps all over the market this afternoon. I doubt she will.
June contracts seeing not much activity. They are done on Friday anyway so there is nothing there.
July is seeing heavy put buying in the 30, 34 and 35 strikes. Looks like some short term hedging and some swing trading going on here. I have no interest in July puts at this point and I don't see it as anything bearish longer term.
Further out the August and October contracts are seeing more call buying than put buying. Clearly the outlook is longer term and that should be the focus. With IV's in the 30's and with the price pullback, those Oct 40 calls have come in nicely and represent a low risk entry to the IPO play. The 38 calls, however, may offer a better opportunity for a low risk entry that is not too far OTM when playing the October calls. There should be some swing play round trip opportunities as well.
Right here I'm liking the Oct 38 calls the best. If you want to plat at the money then consider the August contracts. IV's are not too high and there is no need to spread. RSI(5) has reached oversold. CCI(18) not quite but close. Too early for a signal yet, but probably not too early for an entry unless Mrs. Doubtfire craps all over the market this afternoon. I doubt she will.
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