Saturday, October 23, 2010

OptionFlows Overview: There is a smell of fire in the air....

Precious Metals: So we had the sell off from a short term exhaustion level, but notice that all we got was a sell of in Call Options, but nobody dared to buy puts!!
Also see how nicely we can see the rise in the Strike Spreads, i.e. the shift into more speculative OTM/ATM Call Options - nice blow off signature.
.....but be careful with the prec. metals, because in the 6day-2month options we see continued rising as if some PLAYAS just rolled some stuff simply over to stay in the game.
There is still plenty of speculation in the Gold space and it seems the Playas are reluctant to buy puts, which could mean the final chapter is maybe not yet in....


Tech mirrors the derisking story we described for the Institutional Hldg Portfolio, with a smell of correction in the air...
Banks have seen a nice amount of put buying and re-risking on the Bear side (rising Strike Spread).
Same feel as with the Banks we get in Emerging Markets !!
(see the glossary on the sidebar for more explanations)

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