Friday’s Options Alerts
Things looked grim at the start after warnings from Check Point
(
CHKP |
Quote |
Chart |
News |
PowerRating) and Bristol
Myers Squibb
(
BMY |
Quote |
Chart |
News |
PowerRating) hit the markets. Not even Dell’s reaffirmation helped. However the
markets reversed during the final minutes of trading to close slightly higher
for the day. For more information on today’s action, please refer to
the market
recap.
The VIX
(
$VIX.X |
Quote |
Chart |
News |
PowerRating)
opened near its highs and closed near the lower third of its range.
This shift in
intraday sentiment suggests that fear is declining. The VIX triggered a CVR I buy
signal and it is setting a CVR II buy signal too. The VXN
(
$VXN.X |
Quote |
Chart |
News |
PowerRating) opened near its highs and closed near its lows. This shift in intraday sentiment also
suggests that fear is decreasing. The VXN triggered a CVR I and II buy signals
today. We could have more of a bounce tomorrow.
Points of Significance:
F5 Networks
(
FFIV |
Quote |
Chart |
News |
PowerRating) dropped over
20% on four times its average volume. The shares came under pressure today after
a very cautious research note from J.P. Morgan. There is heavy activity in the
April and May 20 puts.
Check Point Software
(
CHKP |
Quote |
Chart |
News |
PowerRating) fell
almost 20% on six times its average volume. The shares succumbed to weakness
after the company warned that its first quarter earnings would be below
expectations. The Internet security software company attributed the
weakness to the weak IT spending environment. Shares of Check Point are at a
six-month low. There is heavy activity in the May 22.50 puts.
Autonation Inc.
(
AN |
Quote |
Chart |
News |
PowerRating) gained
over 6.5% on heavy volume today. The stock broke out of an ascending
triangle. There is heavy activity in the May 15 calls.Â
| Volatility Index |
Close | Net Change |
Signals/Direction | % Above/Below 10 Day Moving Average |
Significance |
| VIX | 21.77 | UP 0.13 |
CVR I BUY |
7.5% Above |
Not at Extreme |
| VXN | 40.22 | DOWN 0.81 |
CVR I, II BUY |
5.34 % 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 |
| F5 Networks |
FFIV | – 20.64 |
15714 | 1664 |
| Check Point Software |
CHKP | – 19.62 |
40596 | 7241 |
| Genta | GNTA | – 16.50 |
8669 | 1912 |
| Bristol Myers Squibb |
BMY | – 14.72 |
33967 | 13327 |
| Autonation | AN | + 6.65 |
2320 | 698 |
| Teva Pharmaceuticals |
TEVA | + 3.79 |
2124 | 853 |
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 |
| Bristol Myers Squibb |
BMY | 38.3 | 29.1 | 47.7 | 26.5 |
| Infocus Systems |
INFS | 68 | 53.4 | 66.5 | 54.6 |
| Lilly Eli |
LLY | 32.5 | 26.1 | 36.8 | 21.8 |
| F5 Networks |
FFIV | 103 | 84.5 | 103.5 | 77.2 |
| Sara Lee |
SLE | 23.1 | 19.7 | 28.1 | 19.4 |
| FileNet | FILE | 70.5 | 60.6 | 66 | 54.4 |
Spike Down
| Name | Symbol | IV | Previous IV |
High IV |
Low IV |
| Pennz Energy |
PZL | 19 | 29 | 54.2 | 31.8 |
| Consumer Staple SPDRs |
XLP | 11.1 | 16.4 | 18.8 | 12.6 |
| NRG Energy |
NRG | 25.2 | 35.5 | 71.2 | 32.5 |
| Lonestar Steakhouse |
STAR | 19.1 | 26.9 | 45.2 | 42.9 |
| Istar Financial |
SFI | 25.7 | 31.5 | 27.8 | 19.1 |
| Lincare Holdings |
LNCR | 32.6 | 39.4 | 66.3 | 37.2 |
Please use stops on every trade!