Today also was the launch of AAPL mini options. These derivatives are have a 10 multiplier as opposed to the normal 100 multiple. These benefit retail customers given that the cash outlay is lower than normal options and at first glance the bid ask spread is also rather narrow for a new product. From the prospective of volume, the mini options are gaining interest faster than AVSPY alpha options too.
Even last year when the European banking system was shaking it was Draghi of the ECB that promised to use and make unlimited resources available in order to buy PIGS-paper. In this ways, savings depositors were calmed as the money at the bank supposedly would be safe.
It all was until this game-changer of a weekend when they made a kind of decision involving Cyprus, that offset all efforts ands decision makings in the last 2 years. And for what? A silly €5.8 Billion? Like this will create any change? And yes it’s only 6.75% and 9.9%… today! If this is tolerated, what about the future?
What about savers in Greece, Spain and Portugal? I bet you they will be a lot more insecure about their money at the bank! This will have huge implications. With this specific action Europe shows that it is willing to do anything and everything to preserve the Euro. It is because of this action the Euro will be under intense pressure for weeks maybe even months to come.
This will definitely move savings in all kind of directions. My bet a lot of it will flow into real assets, Gold and Silver!
Source: http://www.beurs.com/
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Sven Van Tongeren
KOTM Contributor-At-Large
Sven@KeeneOnTheMarket.com
Prior to the disappointing data released last week, the British Pound suffered when Britain’s credit rating was downgraded by Moody’s last February. Another main concern is the expected quantitative easing from the Bank of England in response to their .3% drop in GDP in the final quarter of 2012. It is no longer a question of whether the Bank of England will ease its monetary policies, but how much. Unfortunately, Britain’s economic forecast is looking nearly as bad as the euro-zone.
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Edmund Gray
KOTM Contributor
edmund.gray@gmail.com
Paper bought 6760 NYX June 32 Puts for $.20 (12.8 time usual volume) when stock was trading $38.14
Paper bought 1100 USNA April 35 Puts for $.55 (3.2 times usual volume) when stock was trading $46
Paper bought 1000 NTES April 52.5 for $2.25 (2.6 times usual volume) when stock was trading $52.32
Paper bought 1030 ASML April 72.5 Puts for $3.20 (3.1 times usual volume) when stock was trading $71.55
Paper bought 200 MDC Sep 19 Puts for $.85 (2.2 times usual volume) when stock was trading $38.60
Paper bought 3000 BRE July 60 Calls for $.15 (3.7 times usual volume) when stock was trading $49.70
Paper bought 14,435 FSL March 16 Calls for $.05 (8.9 times usual volume) when stock was trading $15.72
Paper bought 5304 CIE April 27.5 Calls for $.98 (2.2 times usual volume) when stock was trading $26.70
Paper bought 400 CRR April 100 for $2.70 (3.1 times usual volume) when $2.50
Paper bought 600 AVNR March 3 Calls for $.05 (5.8 times usual volume) when stock was trading $3.06
Paper sold 24,910 $SKS April 12 Calls for $.25 (17.6 times usual volume) when stock was trading $11.78
Paper sold 8000 REN April 7.5-10 Call Spread for $2.35 (14.4 times usual volume) when stock was trading $11.46
Paper bought 4999 WPZ April-March 55 Put Spread for $.90 (5.5 times usual volume) when stock was trading $49.13
Paper sold 5000 PGNX May 4 Puts for $.35 (370 times usual volume) when stock was trading $4.16
Paper sold 9948 DNDN Aug 5 Puts for $.71 when stock was trading $5.43
Under Armour has made many inroads into different sectors of the retailing market. As mentioned before, these include the shoe, casual, and female market for example. A risk to these efforts is if these investments don’t pay off, or the consumer rejects their products. It is interesting to note too that the stock has over 17% short interest. This may indicate that some of Wall Street believes UA is overvalued and does not present great prospects as it once did before from a risk reward prospective.
The front month options imply a $4.4 range up or down by expiration in just over 30 days. This is about an 8% move up or down.
Under Armour has made many inroads into different sectors of the retailing market. As mentioned before, these include the shoe, casual, and female market for example. A risk to these efforts is if these investments don’t pay off, or the consumer rejects their products. It is interesting to note too that the stock has over 17% short interest. This may indicate that some of Wall Street believes UA is overvalued and does not present great prospects as it once did before from a risk reward prospective.
The front month options imply a $4.4 range up or down by expiration in just over 30 days. This is about an 8% move up or down.