OfficeMax (OMX)
by Houghton and Atkeson 09/08/08
OfficeMax (OMX) is at the intersection of weakening retail and business spending patterns. The stock has not had a good year, as it is down nearly 40% year-to-date.
Option investors are betting this deer cannot get out of the headlights. On Friday of last week, they rolled forward their OMX Sept 12.50 Puts (OMXUY) to October (OMXVY). With the stock trading at about $13 per share and the option investors paying about $1 per contract, their trading signals a belief that the OMX is going lower.
Ready to get in on the big-money options trading action? Sign up for your risk-free trial to Nick and Andrew's Big Money Options service, which gives you 2-3 specific trading recommendations a week, delivered by e-mail, PLUS timely profit alerts and trade updates.
More By This Expert
Looking into June, the market should begin refocusing on upcoming earnings reports for evidence the economy is gaining momentum.
Watching the Treasury's Actions
In the short-term, the government's bond auction is likely to be a key driver of stocks.
Treasury Auction Boosts Market
The Treasury's auction of two-year notes brought an upside surprise which should alleviate fears of a lack of demand for U.S. paper.
Credit Markets Point to Upturn
The credit market, a reliable indicator of equity direction, suggests we will break out of the SPX's trading range to the upside.
The market seems to be saying that a 30% move up from the lows is ahead of the real economy and the market needs to allow the economy to catch up.
- What's Hot: DELL, DHI November 20, 2009
- Sidewinder: MCD, DKS, JPM November 20, 2009
- Options News: SII November 20, 2009
- Sidewinder: CY, ADSK, KG November 19, 2009
- Options for Dummies November 19, 2009
Options Broker Center
