Monday’s Options Alerts
Choppy, choppy, choppy
–Â that’s how we’ll describe
today’s trading. Despite the multiple CVR sell signals and profit warnings from
Walt Disney
(
DIS |
Quote |
Chart |
News |
PowerRating) and H.J. Heinz
(
HNZ |
Quote |
Chart |
News |
PowerRating), the markets held up fairly well and even
closed slightly higher. Today the VIX
(
$VIX.X |
Quote |
Chart |
News |
PowerRating) gapped up on the open and
spent the day working its way down to close near the lows of the day. This
intraday shift in sentiment suggests that fear is once again
dropping. Today the VIX did pull more than 10% away from its 10-day moving
average, thus triggering a CVR
III sell signal. This week has given us four CVR sell signals. The VXN
(
$VXN.X |
Quote |
Chart |
News |
PowerRating)
showed similar action as the VIX today, as it too gapped higher at the open and
spent the day working its way back down to close near its lows for the day. This intraday shift in sentiment suggests that
fear is subsiding. Today’s action triggered a CVR
I buy signal today.
Points of Significance:
AstroPower Inc.
(
APWR |
Quote |
Chart |
News |
PowerRating) lost almost 15%
today after it missed analysts’ estimates. The stock also broke below its 50-day
moving average on triple its average trading volume. Options volume were heavy as it
traded more than double its average daily contract volume. Adelphia
Communications
(
ADLAC |
Quote |
Chart |
News |
PowerRating) gapped lower on ten times its average trading
volume after they reported wider losses. Stericycle
(
SRCL |
Quote |
Chart |
News |
PowerRating) broke
above its 20-day moving average on triple its average trading volume. Options
volume was heavy as it traded nearly four times its average contract volume.
Sherwin-Williams
(
SHW |
Quote |
Chart |
News |
PowerRating) is pulling back after recent highs, and its implied
volatility is at a new high.
| Volatility Index |
Close | Net Change |
Signals/Direction | % Above/Below 10 Day Moving Average |
Significance |
| VIX | 28.76 | – 1.12 | CVR III SELL |
10.18 % Under | At Extreme |
| VXN | 58.59 | – 0.16 | CVR I BUY |
2.22 % Under |
Not At Extreme |
Abnormal Options Volume With Price Movement
– Abnormal options volume (calls and puts) with stock price movement
| Name | Symbol | Net % Change |
Volume | Avg. Volume |
| AstroPower Inc. | APWR | – 14.66 | 959 | 372 |
| Optical Robotics Corp. |
OPMR | – 11.61 |
1150 | 310 |
| Adelphia Communications |
ADLAC | – 10.07 |
2156 | 445 |
| Stericycle | SRCL | + 9.12 |
1209 | 291 |
| Albany Molecular Research |
AMRI | – 9.11 | 490 | 146 |
| Cross Timbers Oil |
XTO | + 7.97 |
2030 | 385 |
Stocks With Biggest Spikes in Implied
Volatility – Stocks with biggest increases or decreases in implied
volatility compared to previous day.
Spike Up
| Name | Symbol | IV | Previous IV |
High IV |
Low IV |
| Sherman Williams | SHW | 38 | 32.2 | 37.5 | 25.7 |
| Xcel Energy | XEL | 25.9 | 22.6 | 31.6 | 24.3 |
| Cognos | COGN | 53.8 | 47.2 | 74.3 | 46 |
| MBIA | MBI | 45.3 | 39.9 | 52.5 | 25.3 |
| Visible Genetics, Inc | VGIN | 104.1 | 93.7 | 106 | 58.6 |
| Manpower Inc. | MAN | 38.8 | 35.2 | 49.7 | 27.7 |
Spike Down
| Name | Symbol | IV | Previous IV |
High IV |
Low IV |
| Sylvan Learning System | SLVN | 49 | 67.5 | 70.4 | 41.3 |
| Newport News Shipbuilding |
NNS | 18.6 | 22 | 30.7 | 15.1 |
| New Plan Excel Realty |
NXL | 27.9 | 32.8 | 36.8 | 20 |
| Trizec Hahn | TZH | 30.7 | 35.8 | 33.6 | 29.2 |
| Duke Weeks Realty | DRE | 24.9 | 28.6 | 30.4 | 19.2 |
| Nvidia | NVDA | 75.8 | 86.4 | 100.9 | 61.6 |
Please use stops on every trade!