Thursday, November 19, 2009

GWW set up 11/18/09

As a followup to the CL video here is a similar video of a trade some of our room did in GWW on Wednesday 11/18/09. As with the CL trade, this video shows our interns screen. The top right is our Trading RM Real Time product (available via AOL IM). The bottom right of the screen in The bottom left of the screen shows our options view.

The trade involved a move in GWW after it announced guidance and a buy out of Alliance energy solutions in an all cash deal.

As you watch the video please note the following times and actions:

  • Time in video 0:00, the GWW 100 puts are 0.85-1.00. We also see first headline on posting that GWW is announcing guidance. At this point the major news services had only announced GWW guidance, but did not mention the buy out of Alliance Energy Solutions. The guidance was in line, but the price action told another story. We noted the price action and were ready for a trade.
  • Time in video 2:14 trader AE buys GWW puts. (+GWW P AE). Put market is 1.50-1.55
  • Time in video 2:52 trader AE is out of his puts. Trading $2.00 and higher at this point.
  • Time in video 4:16 our traders see an opportunity to get in GWW for another trade. GWW 100 puts roughly offer $1.90.
  • As the video ends the puts are bid 2:20

(as I mentioned before future trade videos will include audio commentary and a clearer picture).

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