On Options Action last Friday, we held a funeral for high-growth momentum stocks. The trade that had been working so well for so long appears to have come to a halt as investor appetite for risk has retrenched.
Last week’s moves in technology names told two strikingly different stories.
It is the second most frequently asked question from Options Action fans: Where can I get a recap of the strategies on the show? (For the record, "Does Melissa Lee really read all the emails?" is the most popular question, and I am happy to say the answer is yes). Well, you asked, and now we'll deliver. Here's your recap of Friday's trades.
A Nomura upgrade this morning is helping the aerospace giant lead the Dow, but it also has some market participants wondering if the stock is downright cheap.
Battered Sprint shares got a much needed boost this morning courtesy of the Justice Department. But the action in the options pits was even more furious.
Last Friday, Dan Nathan of Riskreversal.com suggested a bearish bet on best of breed bank JP Morgan, and today a similar trade printed in size.
If people won't pay up for leather bags, will they still buy pricey, albeit delicious, burritos? It's a question Chipotle investors might want to ask.
While the market turmoil has taken some high-growth stocks to the woodshed (see: Netflix, Sina, Juniper), there has been one relative beacon of strength: Apple.
There are debates that in retrospect seem mighty silly. Prince vs. Michael Jackson. Vince Carter vs. Kobe Bryant. RIM vs. Apple.
While markets have sold off in recent days on mounting worry that Greece and other peripherals might default on their debt, options investors have shown unwavering faith in Germany, the stalwart nation that's been pulling much of the region's weight.
With the Federal Reserve soon to pull the plug on QE2, and data showing no fundamental reason for energy prices to maintain recent heights, the market has begun turning its back on risk trades and sent share, and barrel, prices lower over the past week.
When whales like George Soros and Carlos Slim are making bearish bets on silver, even usually contrarian options traders are wise enough to recognize that the tide may be turning against the commodity.
Could the gold rush be showing signs of age? If options activity is any indication, the answer is yes.
A big trade Thursday in the SPDR S&P 500 ETF shows stock investors' nerves of steel are faltering.
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