Keep an Eye on Open Interest
Optimism is flowing freely this morning. The rainclouds are clearing away, and damage from both Irene and Athens isn't what most were expecting. Still, it doesn't make those affected by Irene feel much better, and our best wishes go out to them. I know I was muttering a few non-choice words last night when our air conditioning went down and the temperature rose to 91 degrees upstairs in my house, but then I started thinking about my friends and family back east, knowing things could have been a lot more uncomfortable. It's ironic that we have one part of the country begging and praying for rain while another part of the country was hoping and praying the rains would miss them.
Trading can be ironic as well. One minute you are looking for a stock to push higher, then you sell or short, and suddenly you hate the thing. "Drop! Go down!" Now you are yelling at the monitor as if it will hear you. This irony can teach us things. I was watching the action in Shaw Group (SHAW) September 25 calls last week, as suddenly there were 10,000 contracts out there for a stock trading in the low $20s. It looked worth a shot, but with the more conservative $23 options....445 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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