As of today the top ten most active option contracts traded were:

  1. PowerShares DB US Dollar Index Bullish (NYSE:UUP) November 23 Call Options
  2. iShares Russell 2000 Index (NYSE:IWM) January 54 Put Options
  3. SPDR S&P Homebuilders (NYSE:XHB) November 16 Call Options
  4. S&P 500 SPDR (NYSE:SPY) November 105 Put Options
  5. Citigroup (NYSE:C) November 5 Call Options
  6. iShares Russell 2000 Index January 49 Put Options
  7. SPDR S&P Financials (NYSE:XLF) November 15 Call Options
  8. S&P 500 SPDR November 106 Call Options
  9. SPDR S&P Financials December 13 Put Options
  10. S&P 500 SPDR November 104 Put Options

This activity is the more bullish than the previous trading days. Something that stands out to me in a BIG way is the November UUP 23 Calls being the most active options with over 327,000 traded. This is really started to hint at a stronger dollar going forward, and as promised I will try to get to write an article on a strong dollar trade this weekend at the latest. I have been very sick lately and have not been able to write as much. Today’s option activity gave us a very nice mix of different stocks/ETFs. One ETF we don’t see to often is the Homebuilders (XHB), perhaps someone is speculating in a big way that we will see the home buyer tax credit extended. I sold November 23 puts on Cisco (CSCO) and November 5 puts on Conseco (CNO) today on increased levels of implied volatility before earnings. I will look to close both tomorrow morning on strength in the underlying. I am still very bullish on Visa and am leaving my position on the table for now. I purchased back some of the put options I sold just before earnings on Las Vegas Sands (LVS) today for 20% of the premium received. I will look to let the remaining position expire or purchase it back for less than a nickel a share if there is more than 10 days remaining the in the contract. Happy trading!