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Options Traders May Be Turning Bullish

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  • The lumber sector and parts of the housing market seem to be clawing for a tradeable bottom.
  • Something interesting is happening in the options market which may bode well for the stock market. Traders are loading up on call options at the 439 and 440 strike prices for S&P 500 SPDR (SPY).
  • Both the Nasdaq 100 (NDX) and the S&P 500 (SPX) indexes rolled over to end the week after both made new highs previously.

Stock market report
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By Joe Duarte

Despite some sloppy trading action and some sluggishness in the market’s breadth, there may be some good news developing in the options market, which could bode well for stocks in the not-too-distant future, barring some

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Comments (1)

Convoluted profile picture
I suggested selling the NAIL 70 puts a couple of weeks ago-it’s already moved back above 80.

I typically don’t like EOY projections. After all, what’s the big deal between Dec 31 and Jan 1? Years ago a client asked me where I thought the S&P would be at the end of the year. I replied that we only had visibility to Dec 17. I was being facetious, but he thought I was serious.

Yes, I know it’s a marker for numerous things -all products of our imagination.

But, can we discern anything useful from the options chains-especially SPX? I’m watching the daily changes in volume at the 4400 and above. The action suggested selling the Dec 31 4600 puts-a rather bullish move. It all hinges on whether the Chic Filet college football kickoff game is played as scheduled. At the moment, it’s a ‘go.’

It’s important to note that the SPX index is, at least currently, poorly balanced. And, as noted in the article, the summer doldrums are very noticeable.
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