Options Flow Summary: TGT & Pin Candidates

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General Sentiment
With the market rallying, implied volatility is generally trending lower. The CBOE VIX is down almost a full point to 13.81 as the two-day recovery eases fears of a market disruption.

Option order flow is generally bullish. There are twice as many calls trading today as puts. Overall flow direction is generally characterized by call buyers and put sellers.

Target (TGT)
TGT announced an increase to its stock repurchase plan. Option traders have responded with a general selling of puts to reflect their decreased concerns about future stock volatility.

TGT options are trading at twice their average daily volume today. So far, 27,000 January 2009 55 puts have changed hands on the ISE in an opening transaction. The seller of these puts is comfortable that the company's stock buyback may act as a ëfloorí for the stock in the coming months.

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Pin Candidates
An update on options with large open interest that expire tomorrow afternoon:

Symbol	Expiry	Strike	Put / Call	Spot	Distance	OI
CVS	Jun7	37.5	Calls	$37.50	0	45519
CVS	Jun7	37.5	Puts	$37.50	0	18412
BAC	Jun7	50	Calls	$50.12	0.12	41827
BAC	Jun7	50	Puts	$50.12	0.12	29892
YHOO	Jun7	27.5	Calls	$27.35	0.15	17948
YHOO	Jun7	27.5	Puts	$27.35	0.15	47763
ORCL	Jun7	20	Calls	$19.61	0.39	39021
ORCL	Jun7	20	Puts	$19.61	0.39	4956
MO	Jun7	70	Calls	$70.40	0.4	36322
MO	Jun7	70	Puts	$70.40	0.4	61372
GE	Jun7	37.5	Calls	$37.93	0.43	87950
GE	Jun7	37.5	Puts	$37.93	0.43	22112
ORCL	Jun7	19	Calls	$19.61	0.61	64342
ORCL	Jun7	19	Puts	$19.61	0.61	18232

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