bank_mortgage_0-300x199The ADP Employment Change report for September was up 162,000 which was better than the consensus estimate of 133,000.  The Mortgage Bankers Association reported a 16.6% increase in mortgage applications for the week of September 29, led by a 19.6% surge in refinancing applications (purchase applications rose 3.9%).  The index for refinancing is at its highest level since April 2009.

For the third day in a row, options market makers added positive net deltas on their S&P 500 positions.  In ON Semiconductor (ONNN), there was a buyer of 6,000 Jan 7.5 calls.  This was 9x normal activity.  In Brookdale Senior Living (BKD), there was a buyer of 2,000 Nov 25 calls.  Options flow continues to be bullish in Delta Air Lines (DAL).  Yesterday, there was a buyer of 5,000 Oct 10 Calls.  In Meritor (MTOR), 3400 Nov 4 calls were bought.  In New Gold (NGD), there was a buyer of 5500 Oct 11 Calls.  Both the MTOR and NGD calls are in-the-money which normally is an expression of high conviction.  On the bearish side, there was a buyer of 10,000 Aeropostale (ARO) Oct 13 puts, opening.  Options market makers are positioning for further downside in ARO.

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