The S&P 500 is on track to break a 5-day losing skid heading into the long weekend. The index was recently up 15.90 to 2008.54 and down 1.8% from a week ago.
Treasury bonds are lower after the big rally seen in recent weeks and the yield on the ten-year, which hit 52-week lows of just 1.7% this morning, is now at 1.815%.
Commodity-related names (XLE, XLB) are broadly higher after crude gained $2.22 to $48.95 and gold jumped another $13 to $1278. While oil finished the week modestly higher, the yellow metal added more than $60.
Healthcare (XLV) and Consumer Cyclicals (XLY) are also outperforming.
CBOE Volatility Index (.VIX) hit a multi-week high of 23.43 and is off .22 to 22.17. The Euro Currency Vol Index (EVZ) was the week’s big mover among the volatility indexes. EVZ is up .30 to 14.44 after hitting a high of 16.8 earlier today.
Trading in the options market is very active due to the expiration. Since the January term includes many former Long-Term Equity Anticipation Securities [LEAPs], it is often a busy expiration. Today is no exception. 11 million calls and 9.3 million puts traded across the exchanges. The projected volume of more than 23 million contracts is the highest since 12/18.
Expiring Jan 200 puts and calls on the SPDR 500 Trust (SPY) are the day’s most active options as the S&P recaptures 2,000 and SPY clings to $200 per share.
Meanwhile, the biggest trade of the day is a buyer of 115,000 SPY Feb 115 calls for 15 cents per contract. The action appears to be repeat buying from 1/7 when a buyer paid 23 cents for a 100-000-lot of those same calls.
Next week, focus turns to earnings as the floodgates open on fourth quarter results after a three-day weekend. Enjoy the break and see you Tuesday.
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