Market/Option Wrap Up December 23, 2009

http://www.OptionSIZZLE.com In last nights market and option video, I talked about how Ebix Inc (Nasdaq: EBIX) could turn out to be a bear trap like how OmniVision Technologies, Inc.(Nasdaq: OVTI) had the similar head and shoulder formation, but trapped short sellers that anticipated the trade and squeezed them out on yesterday's rip higher. Today (EBIX) ripped another 4% putting the squeeze on those shorts, which had us sending a trade alert to our members stopping out of our bear put spread.

Newspaper stocks saw a very strong gap open higher today following an upgrade from WELLS FARGO & CO (NYSE: WFC), but did the options market see this coming, absolutely!


Yesterday, I put out a real-time alert in our chat room and a blog post in our Elite subscription service noting the unusual call activity in the (NYT) January and February 10 calls. Just two days before, I posted to our members and follower on our twitter feed, that the January 15 calls were seeing a pickup in activity, where 5k hit the tape on the ask-side of the market for .55 cents. Today, those (GCI) January 15 calls were up over 100%.

Category:

Education

Tags:

• option traders
• stock option trading
• trading systems
• trading strategies
• online options trading
• options trading systems
• day trading videos
• unusual option activity
• option trading strategies
• trading tips
• option trading secrets
• trading ideas