Monday’s Options Alerts…
The Commerce Department reported today that the
third quarter GDP fell at a revised 1.1% annual rate, which was the
sharpest fall in nearly a decade. Broader market averages such as the S&P
500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) and Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) fell slightly on the news. The Dow
(
$INDU |
Quote |
Chart |
News |
PowerRating),
however, rose slightly as gains in Home Depot
(
HD |
Quote |
Chart |
News |
PowerRating) helped boost the index. The VIX
(
$VIX.X |
Quote |
Chart |
News |
PowerRating) opened near
its highs and closed near the midpoint of its range. Despite the VIX
closing slightly lower, the intraday shift in sentiment
suggests that fear is crawling back up. No CVR signals were triggered today. Likewise, the
VXN
(
$VXN.X |
Quote |
Chart |
News |
PowerRating)
exhibited similar action as the VIX
as it too opened near its highs for the day, but closed near its lows for
the day. This intraday shift in sentiment is telling us that
fear is retreating. The VXN did not trigger any CVR signals today.
Points of Significance:
Following yesterday’s 33% jump, InVision Technologies
(
INVN |
Quote |
Chart |
News |
PowerRating) gained another 24% today on four times its average trading volume as they announced
that the FAA purchased several of its i-Portal 100 imaging detection
systems. InVision hit a new high today on over five times its average
volume. Its options traded nearly ten times its average contract volume. There
is heavy activity in the December and January 25 calls. ATI Technologies
(
ATYT |
Quote |
Chart |
News |
PowerRating)
jumped almost 12% on nine times its average trading volume today after
announcing yesterday that Gateway
(
GTW |
Quote |
Chart |
News |
PowerRating) will be using their Radeon 8500
video cards in their 700 series of desktop computers. S1 Corporation
(
SONE |
Quote |
Chart |
News |
PowerRating)
jumped 14% today on five times its average trading volume. Its options volume
traded over nine times its average today. No specific news on S1 was cited.
| Volatility Index |
Close | Net Change |
Signals/Direction | % Above/Below 10 Day Moving Average |
Significance |
| VIX | 26.14 | DOWN 0.12 | NONE | 0.007% Above | Not At Extreme |
| VXN | 48.45 | DOWN 0.46 | NONE | 4.59% 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 |
| InVision Technologies |
INVN | +24.38 | 6063 | 652 |
| RAS Security |
RSAS | +19.10 | 2797 | 615 |
| Peregrine Systems |
PRGN | -15.21 | 5611 | 1317 |
| J.D. Edwards |
JDEC | -14.95 | 2051 | 710 |
| S1 Corporation | SONE | +14.06 | 2952 | 306 |
| ATI Technologies |
ATYT | +11.87 | 829 | 163 |
Stocks With Biggest Spikes in Implied
Volatility –– Stocks with biggest increases or decreases in implied
volatility compared to the previous day.
Spike Up
| Name | Symbol | IV | Previous IV |
High IV |
Low IV |
| Telefonos de Mexico | TMX | 32.7 | 19.6 | 40.3 | 27.7 |
| Red Hat | RHAT | 91.1 | 72.8 | 86.1 | 66.0 |
| Schering Plough | SGP | 42.7 | 34.2 | 43.5 | 30.1 |
| WorldCom | WCOM | 54.1 | 47.7 | 60.3 | 48.3 |
| American International Group | AIG | 26.3 | 23.8 | 42.9 | 17.6 |
| Marshall Industries | MI | 21.2 | 19.2 | 33.3 | 19.1 |
Spike Down
| Name | Symbol | IV | Previous IV |
High IV |
Low IV |
| Willamette Industries | WLL | 20.8 | 25.6 | 44.7 | 19.3 |
| Repsol S.A. | REP | 27.6 | 32.7 | 48.0 | 26.8 |
| TV Azteca | TZA | 48.7 | 56.8 | 94.7 | 49.5 |
| Bard Inc. | BCR | 41.8 | 48.1 | 53.2 | 19.0 |
| Edison Int’l | EIX | 45.7 | 52.5 | 77.5 | 52.6 |
| Getty Images | GETY | 63.6 | 72.8 | 96.4 | 68.1 |
Please use stops on every trade!