US .. stock futures are trading higher this morning. Winnings come as traders surrender to night's state page Address from the president.
Front Clock, Futures on Dow Jones Industrial Average is up 0.39% and S & P 500 futures are higher by 0.21%. Nasdaq-100 futures have added 0.41%.
In the options, the total lack of any panic put whatever the ground demand. On a broader level, the total volume levels came up well on average. In particular, only 15.6 million calls and 12.6 million calls put changed hands on the session.
There was little change on the CBOE, where the session volume for the single-session equity was set at 0.6. The 10-day moving average also kept its ground at 0.63.
The ring options dominated by today's crop of notes. Aurora Cannabis (NYSE: ACB ) saw renewed option interest with continued tension over marijuana shares. Roku (NASDAQ: ROKU ) increased as much as 12% on a positive news report. Finally, Apple (NASDAQ: AAPL ) was added to their after-sales profits with a solid 2.8% bump.
Let's take a closer look:
Aurora Cannabis (ACB)
Marijuana shares have made frequent appearances on the chart this year. The reason for the activity should not be surprising given the industry's meteoric growth in 2019. On Monday, one of the smaller companies in the room made a rare display on our list: Aurora Cannabis.
The news was light on Monday, so I limed up the elevated activity as a technically driven event. The ACB share scored a supplement to a new three-month high. 8.6% rally was accompanied by large volumes. In fact, the 67.58 million shares that traded hands represent the largest volume quest for ACB in history.
On the option trading front, traders came for conversations with revenge. The activity swelled to 445% of the average daily volume, with 125,692 total contracts being traded. 90% of the trade came from call options alone.
The increased demand drove implicit volatility higher in the day to 103%, placing it near a two-month high.
Roku shares rallied some 12% yesterday before pairing the winnings to 4.9% of closing clock. According to Barrons the source of the excitement was news that Comcast (NASDAQ: CMCSA ) was going to focus on Roku and not Apple TV "to spread streaming TV to their cable subscribers . "
While news dogs cling to that narrative, map watchers point to the clear price breakdown of the ROKU share as the cause of the excitement. The rally allowed the shares to clear the 200-day moving average for the first time since November, signaling the next step in the recovery attempt.
The euphoria continues this morning, with the ROKU up 2.4% premarket.
On the option trading front, conversations dominated the session. Total activity rose to 202% of average daily volume, with 91,694 total contracts turnover. Conversations contributed 67% to the season's tally.
Implied volatility inched higher in the day to 78%, placing it on the 45th percentile of its one-year range. Prizes are pricing in daily draws of $ 2.32 or 4.9%.
The email after email continued on Monday, pushing Apple shares to a new seven-week high. The continued force supports the argument that the worst is over and the bottom is in for the AAPL share.
Apple's performance around the earnings season serves as a microcosm for the entire market. The shares were broken weeks before the report when the company pre-announced revenue numbers that were not expected. But then, when the actual data was released, the shares faced relief that the forward guidance was not as bad as expected.
Many stocks that were brought low before Q1 earnings have increased thereafter. This bullish behavior continues to strengthen market recovery.
On the option front, outpaced is called a modest margin. Activity fell, coming in at 94% of the average daily volume, with 535 511 total contracts being traded. 61% of the total came from conversations.
The subsequent impact on volatility persists, and the reading goes to 25%, which is the 30th percentile in its one-year selection. Options are now pricing in daily features of 1.6%.
Tyler Craig did not hold any of the aforementioned securities in this writing. Take a look at his recently released Bear Market Survival Guide to learn how to defend your portfolio against market volatility.