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Daily Stock Market Equity and Options Trading Commentary

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Tuesday, October 13, 2009

Most Active Stock Options October 13, 2009

The top ten most active stock options traded today were:
  1. Citigroup (NYSE:C) October 5 Call Options
  2. PowerShares QQQ (NASDAQ:QQQQ) October 43 Put Options
  3. Intel (NASDAQ:INTC) October 21 Call Options
  4. Teekay Corp. (NYSE:TK) January 2010 12.50 Call Options
  5. S&P 500 SPDR (NYSE:SPY) October 107 Put Options
  6. S&P 500 SPDR October 108 Put Options
  7. Financial Select Sector SPDR (NYSE:XLF) October 15 Put Options
  8. Accenture PLC (NYSE:ACN) October 35 Call Options
  9. Intel October 20 Call Options
  10. PowerShares QQQ October 43 Call Options
Both Accenture and Teekay are spinning out dividends tomorrow which explains the amount of options activity on these stocks today. It looks as if one of the most popular trades of the day was opening 20/21 vertical call spreads on Intel, which turns out it was the right move (as of after hours the stock has traded higher by as much as a dollar). I actually sold October 19 strike puts on Intel to fetch $12 per option contract to help finance the 21 strike call options I purchased for $28 per option contract, I then sold the October 22 strike call options against my Intel 21 calls for $11 per contract, making me net long $5 per contract (before commissions). Yes all of these legs (I traded 3 legs and 150 contracts total) and unlimited contracts for just $14.95 on OptionsHouse.com! I would really like to see Intel fill the spread by expiration returning 2000% on my position. I believe we will see the Dow trade over 10,000 tomorrow, which really means nothing as it is just a psychological level, but that's another 100+ point win for the bulls out there. Sphere: Related Content

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