Tuesday’s Options Alerts
Stocks
started the week off on a positive note as the major averages overcame early
weakness and staged a broad-based rally. Stocks dismissed negative news from AOL
Time Warner
(
AOL |
Quote |
Chart |
News |
PowerRating) and J.P. Morgan
(
JPM |
Quote |
Chart |
News |
PowerRating) as well as jitters over the
looming one-year anniversary of the 9/11 attacks and put in a solid rally.
At the close, the Dow
(
$INDU |
Quote |
Chart |
News |
PowerRating) turn triple-digit losses into almost triple-digit gains as it gained
92.18 points or 1.09%. The S&P
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) gained 9.04 points or
1% and finally,
the Nasdaq
(
$COMPX |
Quote |
Chart |
News |
PowerRating) lagged behind as it rallied 9.30 points or 0.71%.
Gold
(
$XAU.X |
Quote |
Chart |
News |
PowerRating) up 4%, biotechs
(
$BTK.X |
Quote |
Chart |
News |
PowerRating) up 2.83%, and
broker/dealers
(
$XBD.X |
Quote |
Chart |
News |
PowerRating) up 2.46% were the best performers of the day.
Airlines
(
$XAL.X |
Quote |
Chart |
News |
PowerRating), utilities.
Volatility had a big day today, but sold off as the rally progressed. The VIX
(
$VIX.X |
Quote |
Chart |
News |
PowerRating) gapped
up, opened near
its high, and closed near the lows of the day. This shift in intraday sentiment
shows a big drop in fear. No CVR signals were triggered today. The VXN
(
$VXN.X |
Quote |
Chart |
News |
PowerRating)
also gapped higher, opened near its highs, and closed near near its lows and
just above its 10 day average.. This shift
in intraday sentiment also shows a drop in fear.
Points of Significance:
| Volatility Index |
Close | Net Change |
Signals/Direction | % Above/Below 10 Day Moving Average |
Significance |
| VIX | 38.40 | DOWN 1.64 | NONE | 1.64% Above | Not At Extreme |
| VXN | 55.47 | DOWN 1.07 | NONE | 0.007 % Above | 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 |
| Capital One Financial | COF | + 8.13 | 9859 | 3703 |
| Harmony Gold | HGMCY | + 8.27 | 4595 | 958 |
| Beazer Homes | BZH | + 8.20 | 4227 | 456 |
| Medtronic | MDT | + 4.29 | 1118 | 2625 |
| Alcoa | AA | + 3.14 | 4300 | 1594 |
| Activision | ATVI | + 2.68 | 1017 | 233 |
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 |
| Schering Plough | SGP | 54 | 48.4 | 54.4 | 30 |
| Telik | TELK | 71.1 | 64.3 | 87.8 | 66.3 |
| Viacom | VIA | 52.5 | 47.8 | 69.1 | 31.2 |
| Pixar | PIXR | 47.6 | 43.6 | 43.6 | 30.7 |
| J.P. Morgan | JPM | 69 | 64.2 | 79.5 | 29.4 |
| MBNA | KRB | 55.2 | 51.4 | 78.5 | 29.2 |
Spike Down
| Name | Symbol | IV | Previous IV |
High IV |
Low IV |
| Temple Inland | TIN | 34.5 | 40.3 | 452.3 | 23.1 |
| Americredit | ACF | 119.2 | 136.2 | 134.5 | 57.7 |
| Forrest Labs | FRX | 39 | 44 | 49.9 | 29.8 |
| Waddell & Reed | WDR | 39.3 | 44.3 | 44.7 | 22.9 |
| American Capital Strategies | ACAS | 46.6 | 52.4 | 54.4 | 22.4 |
| Arthur J. Gallagher | AJG | 36.2 | 40.2 | 40.3 | 22.9 |
Please use stops on every trade!