Wednesday’s Options Alerts

  • April 22, 2003
  • Chris Tyler

Since our last report the ETFs
have managed to turn in two solid trend days that has many investors probably
scratching their heads.
Price and volume action continues to say ‘yes’ to a
sustainable rally out of our recent daily consolidations, while the VIX is
indicating that there continues to be a great deal of complacency after our
victory in the Middle East. Today’s action was the second day out of three, that
has led our market proxies into the realm of great anticipation, or agitation,
depending on what current your position status is.

They look as good as they’ve looked in over two
and a half years, and with implied volatilities cratering lower, you ‘gotta’
love the protection value out there. One things for sure, if you’re going to
trade, “I’d rather stay spread, to get ahead”, especially when the
price for admission for this roller coaster has gone down to extremely
attractive levels, for what could turn
out to be a very memorable ride. 

Volatility levels as measured by the VIX and the
VXN continue to trigger CVR signals against decidedly strong action in the ETFs.
Proceed with caution, but continue to respect price and volume as your first
guide to making trade decisions.

Points of Significance:

Volatility
Index		 Close Net
Change		 Signals/Direction %
Above/Below 10 Day Moving Average		 Significance
VIX 23.50 Down
.76		      
CVR 3,6 SELL		 12.47%
Below 		 At Extreme
VXN 33.65 Down
1.86		        
CVR 3,6 SELL		 11.51%
Below
At Extreme

 

Abnormal Options Volume — This list
includes both percentage movers that are normally associated with an increase in
options activity, as well as stocks that have unusually high activity and / or
technical situations,
reflecting increased speculation of a potential price move.

Name Symbol Net
% Change		 Volume Avg.
Volume
Benchmark
Electronics 
BHE		        -13% 2473 391
Scientific Atlanta
SFA		        +8% 2359 557
National Semiconductor
NSM		        +5% 1923 939
Blockbuster
BBI		        
-4%		 988 316

 

Stocks With Spikes in Implied
Volatility — Stocks with Increases and Decreases in implied
volatility compared to previous day. Candidates are then screened qualitatively.
These lists represent those issues that carry a blend of liquidity and/or
technical setups that might deserve further notice. 

Spike Up

None Today.

Spike Down

Name Symbol IV Previous
IV		 High
IV		 Low
IV
Cree
Inc.
CREE		 55.4 65.6 96 65
Silicon
Laboratories
SLAB		 51 59.3 102.7 58.3

Please use stops on every trade!