Thursday’s Options Alerts
Stocks reversed off an early morning
dip and overall it was actually a quiet day. Tech stocks took the lead after Maxim Integrated’s
(
MXIM |
Quote |
Chart |
News |
PowerRating) better-than-expected
results and announcement that they’ll pay a dividend for the first time and
France’s Alcatel’s
(
ALA |
Quote |
Chart |
News |
PowerRating) announcement
that they’ll return to profitability net year.
Positive comments about the economy
from IBM’s Chief Executive, Sam Palmisano and better-than-expected results from
Clorox
(
CLX |
Quote |
Chart |
News |
PowerRating) also boosted stocks.
At the
close, the Dow
(
$INDU |
Quote |
Chart |
News |
PowerRating) gained 58.47 points or 0.69%. The S&P
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) gained
8.54 points or 0.96% and the Nasdaq
(
$COMPX |
Quote |
Chart |
News |
PowerRating) gained 26.07 points or 2%.
Until we break 900 on a closing basis on the S&P, we could be in for more
sideways action. Many tech-related sectors including networking
(
$NWX.X |
Quote |
Chart |
News |
PowerRating)
up 11.77%, semiconductors
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) up 6.56%, and oil services
(
$OSX.X |
Quote |
Chart |
News |
PowerRating)
up 5.30% were the best-performing sector today. Meanwhile worst-performing
sectors included retail
(
$RLXI.X |
Quote |
Chart |
News |
PowerRating) down 3.01% (after Goldman Sachs downgraded
Wal-Mart
(
WMT |
Quote |
Chart |
News |
PowerRating)), paper
(
$FPP.X |
Quote |
Chart |
News |
PowerRating) down 2.49% and insurance
(
$IUX.X |
Quote |
Chart |
News |
PowerRating)
down 0.45%.
There was no economic news to report today, but tomorrow we have lots coming
out including: Auto and truck sales, nonfarn payrolls, personal income,
unemployment rate, and the ISM index.
The VIX
(
$VIX.X |
Quote |
Chart |
News |
PowerRating) gapped up, opened near its highs, and closed near the
lows of the day. This shift in intraday sentiment still shows a decrease in
fear.
The VIX triggered did not trigger any more CVR signals. The VXN
(
$VXN.X |
Quote |
Chart |
News |
PowerRating) displayed the same action as the VIX, it didn’t trigger any
CVRs either. .
Points of Significance:
| Volatility Index |
Close | Net Change |
Signals/Direction | % Above/Below 10 Day Moving Average |
Significance |
| VIX | 36.08 | DOWN 0.72 | NONE |
5.62% Below | Not At Extreme |
| VXN | 51.29 | DOWN 1.18 | NONE | 3.24% Below | 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 |
| IGEN International |
IGEN |
+ 16.34 | 4590 | 1077 |
| Darden Restaurants |
DRI |
– 12.69 | 1421 | 124 |
| Cree Inc. | CREE |
+ 10.66 | 1989 | 907 |
| Tektronix | TEK |
+ 6.00 | 1000 | 104 |
| Sunoco | SUN |
+ 5.01 | 1161 | 149 |
| Hot Topic | HOTT |
– 4.37 | 3139 | 585 |
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 |
|
Darden Restaurants
|
DRI |
55.8 | 47.1 | 54.1 | 33.8 |
| Worthington Industries | WOR |
43.6 | 36.9 | 53 | 29.7 |
| Imation | IMN |
52.5 | 45.1 | 47.1 | 38.4 |
| Leggett & Platt | LEG |
38 | 33.4 | 37.3 | 20.2 |
| Yellow Corp. |
YELL |
125.1 | 110.9 | 99.5 | 41.0 |
| Payless Shoe Source | PSS |
41.3 | 37.7 | 42.6 | 24.5 |
Spike Down
| Name | Symbol | IV | Previous IV |
High IV |
Low IV |
|
Chubb Corp.
|
CB |
49.7 | 61.2 | 54.8 | 27 |
| Lincoln National | LNC |
51.6 | 61.4 | 47.3 | 24.5 |
| Valero Energy | VLO |
51.5 | 61.1 | 68.9 | 36.2 |
| Corinthian Colleges | COCO |
62.1 | 72 | 76.4 | 40.3 |
| Public Service Enterprises | PEG |
55.2 | 63.6 | 80.6 | 16.7 |
| Education Management | EDMC |
46.7 | 53.8 | 46.7 | 36.8 |
Please use stops on every trade!