Join        Login             Stock Quote

The Look

 August 15, 2007 08:16 PM

I almost forgot. Voldemort's options "look" shows up sometime this afternoon.
Options expiration should play ball with the oscillator, meaning that there should be some buyers underneath and the shorts may be pressing too hard again.

But one rumor about one major bank or broker -- and there are a half-dozen around the Street -- coupled with a bad look at 2:30 p.m. (meaning that when the big trading desks find out how much there will be to buy or sell on Friday) could put some real downward pressure on the day. Of course, if we get a good look, we could ramp into the closing bell today because we are so oversold.

OK, just to review, no one knows wtf this "look" is, and I have asked numerous people on floors, derivatives desks, et. al. He did elaborate once on Stockpickr, and I discussed that here.

But this is just a throw in, in fact I'd rank it only 3rd on the inanity scale in this article. It starts with some pin thoughts.

This is such an important expiration with so much on the line in terms of puts that have been sold naked -- a dangerous strategy, one that could still come back and haunt hedge funds -- and levels for big-caps that are nowhere near strikes.

Exxon (XOM) could be $85 or $80. AIG (AIG) could be $65 or $60. Citigroup (C) could be $45 but Bank of America (BAC ) could be $50. P&G (PG) to $65?

Yes, you too can look at a screen and figure out which strike a stock may be near, lol.

My comment would be it takes 12 more seconds to look up open interests, and that sheds a little more light. But with volatility so high, pins are silly to game for this go around regardless. Think of volatility is a prediction for a daily range. The higher the volatility, the higher the daily range. The higher the daily range, the less likely something is to pin, plain and simple.

Which brings us to the point of the whole article; what to do in these scary days.
That means, to me, you have to wait, unless you are so margined that you could get hurt by a deep selloff or if you haven't raised enough cash to take advantage of any options-related dip.

Got that? Makes perfect sense, lol.
iOnTheMarket Premium


Comments Closed

rss feed

Latest Stories

article imageLong-term Relationships and Credit Scores

Unlike many commentators, I tend to think credit scores are a good read on...

article imageIn Defense Of Rolling Return Charts

Robeco’s Lukas Daalder has a bit of an issue with rolling-performance graphics. Bashing a recent chart of read on...

article imageThe S&P 500’s Worrisome Downturn In Drawdown

Last Friday I reviewed some of the bearish signals that were casting dark shadows across the US stock read on...

article imageADP: Private-Sector Employment Rises A Solid 200k In September

The pace of growth for private-sector employment picked up in September, according to this morning’s ADP read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.