Thread: Options Week Action

Good Info Tom. Thanks

Looks like a typical Monday morning gap and crap. We know gaps get filled and Monday morning gaps are particularly vulnerable. We had a couple of gap down openings lately and they have yet to be filled. I am watching 825 as a potential upside target before the downside resumes.

I saw this on sentimentrader.com this morning:

"If we look at -2% gap opens, we get 40 occurrences. Every single one - except that one from October 6th of last year - ended up getting filled at some point. On average, it took 5 days to fill the gap. 80% of them were closed within 5 trading sessions, though the average drawdown was -3.3% (meaning the S&P lost an additional 3% or so sometime before the gap was closed)."

Originally Posted by tsptalk

Looks like a typical Monday morning gap and crap. We know gaps get filled and Monday morning gaps are particularly vulnerable. We had a couple of gap down openings lately and they have yet to be filled. I am watching 825 as a potential upside target before the downside resumes.

Yes, another Monday pump and dump. Looks like the selling may pick up...hopefully not to much. I would like to see that 825.

GE Calls surge.

Almost 600,000 calls traded Tuesday, as hordes of investors, big and small, bought what one trader described as "multiple upside calls in a beta bellwether."

Translation: GE offers a cost-effective way to mimic the performance of the Standard & Poor's 500 index without spending lots of money.
With the stock at about $16, investors bought October and December calls that will increase in value should GE's stock price exceed $17, $18 or $20.

Options trading suggests the worst is over for GE.

http://online.barrons.com/article/SB...715913607.html