Divergence Continues, Traders Lay Low

Options players’ response this morning is to remain calm and await further developments— volume is off the pace set at the beginning of the week. Call buyers have closed the gap on the sellers who have been leading in early morning trading, nearly equaling out at 1:1. Overall, order flow is moderate, registering an 3 on a scale of 1 to10, 3 being average.

Here are today’s numbers…

Pre-open order volume was light this morning. Overall, call sellers led buyers 3:2, while put sellers beat out buyers at 3:2. In pre-bell activity, (BRCM | Quote | Chart | News | PowerRating) call buyers crushed sellers 13:1, while put sellers trounced buyers 7:1. (CSCO | Quote | Chart | News | PowerRating) call buyers led sellers 3:2, while put sellers led buyers at 2:1. (PMCS | Quote | Chart | News | PowerRating) call buyers showed up leading sellers 2:1. AOL call sellers crushed buyers 3:1. JNPR call sellers beat up buyers 4:1. (QCOM | Quote | Chart | News | PowerRating) call sellers dominated buyers 2:1.

First hour order volume was average. Overall, call sellers and buyers were even at 1:1, while put sellers beat out buyers at 2:1. In first hour activity, BRCM call buyers beat sellers 2:1, while put sellers trounced buyers 10:1. CSCO call buyers led sellers 5:1, while put sellers led buyers at 5:1. PMCS call buyers showed up leading sellers 3:2. AOL call sellers crushed buyers 3:1. JNPR call buyers now beat up sellers 5:1. (MSFT | Quote | Chart | News | PowerRating) call sellers dominated buyers 2:1. (JDSU | Quote | Chart | News | PowerRating) call sellers dominated buyers 3:2. (AMCC | Quote | Chart | News | PowerRating) call buyers led sellers 8:1.

 tonys@tradingmarkets.com