Daily Report — December 2, 2021

To say there is volatility in the markets is an understatement

The anticipated low volatility in the markets for the half day of trade the half day of trade the day after Thanksgiving never occurred.

A report of a new Covid variant in South Africa called omicron spooked the market to the tune of a 1,000 point drop in the Dow.

As the headlines have been coming through over the following days the markets have been swinging higher and lower depending on if the omicron news id and or deemed not so bad.

Unusually High Call and Put Option Volume lists

I am looking at both of these lists as both may come in to play for different reasons. I look at the calls to see where options traders may be putting their money to work under the premise this drop in the markets has brought prices on the underlying securities to a place they are ‘on sale’ and it might be a good time to step in ‘buy to open’ should we see a bounce in pricing coming up.

I look at the puts to see where options traders may be piling on expecting more downside action in the underlying securities.