After last week's frenzied action that was scoop after scoop of price moves, such as oil's $16 dive, a kick save of Fannie (FNM - commentary - Cramer's Take) and Freddie Mac (FRE - commentary - Cramer's Take) and government going into overdrive to fix the problems that they had a big hand in creating, plus an options expiration, today felt like a gentle swing in the hammock.
As mentioned, banks continued to move higher, but the option activity had only 1.5 calls trading for every put, suggesting that people are starting to create married puts to establish downside protection.
Sandisk (SNDK - commentary - Cramer's Take) was active, but with over three calls trading to every put, it looks this evening's report will disappoint speculators. The stock is trading about 8% lower following this evening's earnings report.
Still waiting on Apple (AAPL - commentary - Cramer's Take), on which the options were pricing in about a 10% price move. Not having any skin in the game, I can wait until tomorrow to see what the news and reaction.
Steven Smith Blog Hot Friday Ends With a Fizzle 7/18/2008 3:51 PM EDT After the last two days, perhaps this session's action wasn't so bad.
Steven Smith writes regularly for TheStreet.com. In keeping with TSC's editorial policy, he doesn't own or short individual stocks. He also doesn't invest in hedge funds or other private investment partnerships. He was a seatholding member of the Chicago Board of Trade (CBOT) and the Chicago Board Options Exchange (CBOE) from May 1989 to August 1995. During that six-year period, he traded multiple markets for his own personal account and acted as an executing broker for third-party accounts. He appreciates your feedback; click here to send him an email.To read more of Steve Smith's options ideas take a free trial to TheStreet.com Options Alerts.
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