November 1st Expiration and Open Interest

This market has been relentless and challenging our nature to think it can’t keep going without a substantial pull-back. However, as I said last week, until we see some type of evidence (i.e. outside day, close below previous days low, close below major support, etc.) then there is no reason not to believe the trend is still up. We once again closed at all time highs on the SPX and the IWM. We closed at 13 year highs on the QQQ.

Although I will continue to follow high beta stocks and open interest on those names, I think the name of the game going forward is rotation. Be on the lookout for out-performers and for those stocks going up when the market is flat or going down. For the short term uptrend to remain intact you want to see 1740 first and then 1735 hold. A break of that and we could see more pullback as opposed to sideways or up action. On the upsidie we are in free air.

Open Interest
Due to earnings next week some of the usual stocks I post as well as others (AAPL, BIDU, FB, LNKD, FSLR, MA, V, YELP) can be found here.

SPY: The highest puts and calls both reside at 175 with more puts. Not bad to see when bullish.

AMZN: Highest calls are at 360, which are currently in the money as AMZN closed at  363.39.

CMG: Keeps grinding higher. Highest puts at 515, which usually provides a backstop if we see it go lower.

GOOG: Doing a good job catching up to PCLN. Highest open interest is the 1000 puts.

NFLX: Some major technical damage last week. Wide range in the open interest.

PCLN: Basing nicely. Highest open interest is the 1100 calls.

TSLA: Definitely hasn’t been its usual powerhouse, but hasn’t been easy to short either. Highest puts 160 and calls 180.