The markets were in the green through much of the session and then the European Central banks indicated concerns about inflation and US markets fell.
The NYSE had volume of 3.9 billion shares with 1,251 shares advancing while 2,036 declined for a loss of 19.25 points to close at 10,245.25. On the NASDAQ, 2.5 billion shares traded, 902 advanced and 2,083 declined for a loss of 39.41 to 2,772.2.
Nordstrom, Inc. (NYSE: JWN) fell $3.64 (-7%) to $44.97 on weak sales. J.C. Penney Company, Inc. (NYSE: JCP) fell $4.73 (-7%) to $63.27 on lowered guidance. Ford Motor Company (NYSE: F) rose $.53 (6%) to $8.76 after Chrysler ended its strike and set sights on Ford. Amazon.com (NASDAQ: AMZN) fell $5.32 (-6%) to $89.34. Research in Motion Limited (NASDAQ: RIMM) fell $5.88 (-5%) to $111.
In options there were 7.2 million puts and 9.2 million calls traded for a put/call open interest ratio of 0.78. The options on the QQQQ were active as investors hedged general market positions. PowerShares QQQ Trust ETF (NASDAQ: QQQQ) saw heavy volume on the October 53 calls (QQQJA) with over 145,600 options trading. On the pit side the October 53 puts (QQQVA) traded over 148,200 contracts.
Other stock that had high volume of options contract include General Motors Corporation (NYSE: GM) saw heavy volume on the November 40 calls (GMKH) with over 39,700 contracts and on the October 40 calls (GMJH) moved 34,300 options. EMC Corporation (NYSE: EMC) saw heavy volume on the October 22.50 calls (EMCJX) with over 36,200 options trading as its subsidiary VMware, Inc. (NYSE:VMW) has taken off. Ford Motor Company (NYSE: F) saw heavy volume on the November 9 calls (FKL) with over 33,500 options trading ahead of a potential deal. Research In Motion Limited (NASDAQ: RIMM) saw heavy volume on the October 120 calls (RULJD) with over 29,800 options trading.
The best potential trade idea here may be the Ford Motor Company (NYSE: F) calls. If Ford is the next stock to be get a deal with the union; the stock could rise. That could make the Ford calls a real deal.
Kevin Kersten is an Options Analyst with InvestorsObserver.com. Disclosure note: Mr. Kersten owns and or controls a diversified portfolio of long and short positions that may include holdings in companies he writes about.
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