Obama is president, the Republicans control the House of Representatives and the Democrats control the Senate. The key players have not changed much post election. The good news is the election results are not contested. The question now is can the same crew who have been unable to compromise for the past couple of years find a solution for the fiscal cliff.
Yesterday, much of the options flow was positioning for the election. For example, we saw put-spread buying in hospitals HCA and THC and bullish flow in HUM which seemed to be based on an expected Romney victory. This morning, on the Obama win, HCA and THC are trading higher and HUM is trading down. In General Motors (GM), there was a buyer of 42,000 Nov 27 calls. Facebook (FB) is facing additional lock-up expirations on November 14. There was a buyer of 12,000 Dec 19 puts in FB yesterday.
In the past couple of weeks, we have not made many recommendations given the uncertainty surrounding the election. With the election behind us, we expect to get back to business as usual with a more steady flow of options trade ideas.