Wednesday’s Options Alerts
Follow through? What follow
through? After yesterday’s intraday reversal, the markets got off to a
decent start but the rally faltered by the early afternoon. The Dow
(
$INDU |
Quote |
Chart |
News |
PowerRating)
again turned early triple-digit gains into losses as it dropped 1.66% to close
near an eight-month low. Not even higher guidance from Dupont
(
DD |
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PowerRating) and
positive comments from Boeing
(
BA |
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PowerRating) could keep the index in the green. The
Nasdaq
(
$COMPX |
Quote |
Chart |
News |
PowerRating) dropped 2.5% and formed an inside bar today, it is within
27 points of its September lows. Finally, the S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) dropped
1.67%.
On the economic front, the Conference Board’s June consumer confidence
numbers dropped to 105.70 from May’s reading of 112.70. Also, the Fed will
continue their deliberations on interest rates tomorrow, the current consensus
being that they’ll let the fed funds rate remain at 1.75%. Monday’s lows are now key
short term support levels, selling could accelerate if we break those lows. For more information on today’s action, please refer to
the market
recap.
The VIX
(
$VIX.X |
Quote |
Chart |
News |
PowerRating) opened
near the lower half of its range and closed near the highs of the day. This shift
in intraday sentiment again shows an increase in fear. No more CVR signals were
triggered today. The VXN
(
$VXN.X |
Quote |
Chart |
News |
PowerRating)
opened near the lows of the day and closed near the highs of the day. This shift in intraday sentiment
also shows a rise in fear. The VXN didn’t trigger any CVR signals
today.
Points of Significance:
FedEx
(
FDX |
Quote |
Chart |
News |
PowerRating) dropped 14% on more
than ten times its average volume. Despite reporting fourth quarter results that
were better than expectations, the shares were hammered after the company
informed investors that its first quarter estimates will be below Wall Street’s
estimates. The shares fell out of a failed cup-and-handle pattern to a new six-month low. FedEx broke below its 200-day moving average today, but bounced off
support at its 50% retracement level from its September lows.
Amazon.com
(
AMZN |
Quote |
Chart |
News |
PowerRating)
dropped over 12% on double its average volume. Shares of the E-tailing giant
fell to a two-month low today as competitor Buy.com announced that in addition
to free shipping, they will undercut Amazon’s book prices by 10%.
Krispy Kreme Donuts
(
KKD |
Quote |
Chart |
News |
PowerRating) fell 10% on
over six times its average volume. The shares are breaking down from a
descending triangle.
| Volatility Index |
Close | Net Change |
Signals/Direction | % Above/Below 10 Day Moving Average |
Significance |
| VIX | 31.47 | UP 1.60 |
NONE | 6.53 % Above |
Not At Extreme |
| VXN | 59.88 | UP 1.23 |
NONE | 6.30 % 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 |
| FedEx | FDX | – 14.31 |
6682 | 307 |
| Amazon.com | AMZN | – 12.39 |
12909 | 1791 |
| Krispy Kreme Donuts |
KKD | – 10.02 |
6010 | 645 |
| Cymer | CYMI | – 10.84 |
2175 | 284 |
| Qlogic | QLGC | – 9.45 |
14104 | 4580 |
| Yahoo! | YHOO | – 9.01 |
7856 | 1471 |
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 |
| Phillip Morris |
MO | 34.9 | 27.7 | 24.7 | 19.4 |
| FedEx | FDX | 40.5 | 32.3 | 32.6 | 25.9 |
| Technology Sector SPDRs |
XLK | 43.2 | 35.1 | 38.9 | 30.4 |
| Hershey Foods |
HSY | 19.3 | 16.6 | 20.7 | 16.1 |
| Corinthian Colleges |
COCO | 58.2 | 50.6 | 52.3 | 35.6 |
| Krispy Kreme Donuts |
KKD | 47.4 | 41.4 | 53.2 | 35.7 |
Spike Down
| Name | Symbol | IV | Previous IV |
High IV |
Low IV |
| Dreyers Grand Ice Cream |
DRYR | 11.8 | 14.4 | 33.8 | 25.7 |
| Apria Healthcare |
AHG | 50.2 | 56.5 | 52.6 | 32.5 |
| Waddell & Reed |
WDR | 31 | 34.5 | 35.3 | 22.9 |
| Idaho Power |
IDA | 29.4 | 32.4 | 30.3 | 16.1 |
| New Plan Excel Realty |
NXL | 16.5 | 18.1 | 22.5 | 16.9 |
| Bemis | BMS | 25.7 | 28.1 | 30.2 | 20.6 |
Please use stops on every trade!