Yesterday, the ISM Services index came in at 55.1 versus the prior reading of 53.7 and the consensus expectation of 53. This was an important positive surprise.
In the options market, market makers continue to increase positive net deltas in the SPX indicating a bullish bias to the overall market direction.
There was a buyer of 2500 General Moly Inc. (GMO) Dec 4 calls. In Opko Health (OPK), there was a major bullish reversal. After six months of bearish options trading, option market makers turned bullish on the stock yesterday. There was an opening buyer of 1600 Oct 4 calls. Additionally, the CEO bought 100,000 shares at $4.14-$4.22 worth $400K yesterday. On Oct 2, the CEO bought $200K worth of stock. On Oct 3, he bought roughly $900K worth of stock for a total of roughly $1.5 million in the past three days. Our records only go back to early July. The CEO has been buying every month on multiple days. Charts of insider buying are shown below. The green dots represent buying.
The first chart is the 6 month insider buying chart. The second chart shows the activity over two years. Insider sell/buy ratios for NYSE stocks is between 6-7:1 compared to an average of 3.5:1 over the past ten years. The amount of insider buying is way down. Clearly, this CEO did not get the memo. We have never seen anything like this.