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Stocks closed down for the day as European sovereign debt concerns and geopolitcal tensions in Korea kept the lid on gains, despite news that the Obama administration will work with Republicans on the tax dispute gave a brief lift to stocks.

The Dow Jones Industrial Average ended down 46.47 points, or 0.42%, to close at 11,006. The S&P 500 fell 7.21 points, or 0.61%, to close at 1180, and the Nasdaq was down 26.99 points, or 1.07%, to finish at 2498. Most key S&P sectors declined, led by technology, health care, and energy, while telecom rose.

Stocks overall closed down for November, even though the energy sector was up about 4.4% and consumer discretionary was up more than 2%. Selling was fueled by concerns about the effectiveness of the Federal Reserve's quantitative easing efforts and the resurgent debt problems in Europe. These factors overshadowed a generally strong earnings season where 73% of the companies in the S&P 500 topped Wall Street's expectations for the their quarterly results.

CBOE Volatility Indexundefined closed up $2.01, at $23.54, on wide intraday price action. Total put volume of 198,400 contracts, compared to 194,400 call contracts, with January 35 calls active.

SPDR S&P 500 ETF (SPY) traders sold straddles this session on the theme that there is little in the way of macro catalysts in the coming weeks and SPY will have a tight trading range. SPY closed down $0.67, at $118.49, on overall put volume of 933,200 contracts compared to 614,400 call contracts, with February 119 calls and puts active. December at-the-money (ATM) 118 weekly straddle is priced at $2.43, December monthly straddle is at $4.69 and January is at $7.41.

The PowerShares QQQ Trust (QQQQ) volatility increased with traders purchasing premium as Google (GOOG) sold off. The Qs closed down $0.65, at $52.08, on total put volume of 151,300 contracts compared to 127,300 call contracts. December monthly put option implied volatility is at 25, above its 26-week average of 24.

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