Dr. Kearney’s Option Clinic

This past week The holiday shortened week got off to a busy start as Steve Jobs announced he was taking a leave from Apple. APPL ended losing about 22 points in active expiration week trading. Feb Implied Volatility in Apple crept higher all week. The NASDAQ bore the brunt of Apple’s performance, while a good earnings report Friday from GE helped push the DJIA into positive territory for the week. The CBOE traded almost 5.8 million options on expiration Friday.

Important index performance last week:

 

  1/14/11 1/21/11
VIX 15.46 (!) 18.47 (almost 20% higher)
Feb VIX Future 18.35 18.85
SPX 1293.24 1283.35
DJX 117.87 118.71
OEX 582.32 579.55
NASDAQ Comp 2755.30 2689.54
30-yr bond 120’29 (4.415%) 120’03 (4.467%)
Oil 90.68 89.60 (hit $93 on Wed)
Gold 1366.10 1346.00 (hit 1341 Thurs, 2-mo low)

 

The Consensus is to use the 30-yr vs. the 10-year

Next week: This may be the busiest earnings week of the quarter

Monday 24 th AXP, AMGN, MCD, HAL

Tues 25 th MMM, JNJ, YHOO!

Wed 26 th ABT, QCOM, GD

Thurs 27 th T, P&G, MSFT (Wed & Thurs full of earnings reports)

Fri 28 th GE, SLB

The week after expiration can be slow, but there are a lot of earnings and economic reports to be announced. The big ones will be Consumer Confidence Tues, Wed will have New Home Sales and the FOMC announcement (1:15 CST), Durable Goods Thurs and on Friday GDP and the U of M Sentiment. Will traders and investors be following the State of the Union Address Tuesday evening?