OptionsHouse

Options Trading News

March 12, 2013  Tue 7:03 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
U.S. equity index futures are indicating a lower open this morning, threatening to break a seven-day winning streak by the S&P 500.

Futures on the S&P 500 and the Nasdaq 100 are down about 0.2 percent as investors may be ready to take a breather from rallies that have reached multi-year highs, with no major economic reports scheduled today. The CBOE Volatility Index, which typically moves inversely to the SPX, fell more than 8 percent yesterday 11.56--its lowest close since February 2007.  

China led Asian bourses lower overnight after the country launched a probe a investment products, helping to drive down the Shanghai Composite by 1.04 percent and Hong Kong's Hang Seng by 0.87 percent. Japan's Nikkei fell 0.28 percent even as the yen continued its decline.

European indexes are mixed but mostly flat so far. Germany's DAX and France's CAC 40 off fractionally as of this writing. The U.K. FTSE 100 higher, but by less than 0.1 percent.

Precious metals are stronger today, with gold and silver both up nearly 1 percent. Copper is also slightly higher. Other commodities are little-changed, including oil and natural gas.

In company-specific news, VodaFone is up sharply in pre-market trading after the company announced last night that its CEO is stepping down. Yum Brands is also trading higher after same-store sales beat quarterly forecasts. BlackBerry is up modestly amid deal rumors and the pending introduction of its new handsets.
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 »