OptionsHouse

Options Trading News

December 6, 2012  Thu 7:12 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
Stocks are little-changed in early trading as investors focus on the so-called fiscal cliff and wait for key jobs data tomorrow.

European indexes are broadly higher, led by a gain of almost 1 percent in Germany, after the region's central bank left interest rates unchanged. Asian markets were little changed in the overnight session.

The S&P 500 is now hovering in the middle of its range over the last three months. It defied most expectations by touching a four-year high in mid-September, only to decline by 9 percent in the next two months after worries about government finances led dozens of companies to lower guidance. The main focus now is Washington, where politicians must agree to narrow the budget deficit or trigger tax increases and spending cuts on Jan. 1.

Foreign exchange and commodities are painting a mixed picture. The euro is mostly unchanged against the U.S. dollar, while the Australian and Canadian currencies are slightly higher. The Japanese yen is gaining, a potentially bearish signal. Commodities are also mostly lower as oil, copper, and silver are all down modestly.

In addition to the talks in Washington, attention will focus on U.S. jobs data. Challenger, Gray & Christmas said that planned layoffs rose by more than 9,000 in November, partly because Hostess Brands went bankrupt. The bigger news will be weekly initial jobless claims at 8:30 a.m. ET, followed by monthly non-farm payrolls at the same time tomorrow.

In company-specific news, Lululemon Athletica is down by almost 5 percent after warning of slower sales growth. Vera Bradley and Men's Wearhouse are also indicated lower on weak outlook.
Share this article with your friends


OptionsHouse

Premium Services

Upcoming Webinar:

Using Options For Income

http://bit.ly/1nY1OKA

Jon Najarian and Adam Mesh of Options Wealth Machine discuss a detailed strategy utilizing credit spreads to generate income, and how any level of trader can use this simple trading technique.

Education & Strategy

Sweet Spot Exceptions

As discussed last week, when using the Stock Replacement Strategy to replace a stock position to trade direction, we want to use an option that has very similar characteristics to the stock. We talked about using the deep in-the-money, 80 to 85 delta option that is similar in the Greeks and has relatively little extrinsic value which tends to work against us in stock directional trading.

View more education articles »