Monday’s Options Alerts
All signs pointed to green as the much better-than-expected
Supply Management Index ignited a broad-based rally. Tech
issues were the best performers today while biotech was the only sector to stay
in the red. The Supply Management Index, formerly NAPM, jumped to 54.7% from
49.9% in January. This was the highest reading since April 2000 and gives
further evidence that manufacturing and thus the economic recovery in under way.
For more information on today’s action, please refer to
the
Stock Market recap.
The VIX
(
$VIX.X |
Quote |
Chart |
News |
PowerRating) opened near
its high and closed in the lower half of its range. This shift in intraday sentiment
today suggests that fear is dropping. The VIX did move over 10% over its
10-day moving average but headed back up towards the close. The VXN
(
$VXN.X |
Quote |
Chart |
News |
PowerRating) opened
right on its 10-day moving average and closed right on its low.
This intraday shift in sentiment also suggests that fear is dropping. The VXN did not trigger any CVR
signals either. Both volatility indices got smacked today as result of positive
economic and corporate news. This was more evident in the VXN as semiconductor,
networking, and Internet issues all put in strong performance.
Points of Significance:
Retek Inc.
(
RETK |
Quote |
Chart |
News |
PowerRating) jumped over 20%
on double its average volume. The shares received a boost today after Bear
Stearns upgraded the stock to “buy” from “neutral” on
expectations that the company will continue to grow its earnings. The shares
broke about its .382 retracement level from its January high. There is heavy
activity in the April 25 calls.
Novellus Systems
(
NVLS |
Quote |
Chart |
News |
PowerRating) jumped
14% on double its average volume. The shares rose to a six month high as they
upped their first quarter outlook and said that they could return to
profitability as soon as next quarter.
Veritas Software
(
VRTS |
Quote |
Chart |
News |
PowerRating) gained
over 10% average volume. The shares are continuing to stage a counter trend
rally after their CFO stated Wednesday that he sees first quarter results coming
in better than expected. The shares did stall at its .382 retracement level from
its Jan. 9 high.
| Volatility Index |
Close | Net Change |
Signals/Direction | % Above/Below 10 Day Moving Average |
Significance |
| VIX | 22.09 | DOWN 1.04 |
NONE | 8.03 % Below |
Not at Extreme |
| VXN | 41.94 | DOWN 4.25 |
NONE | 8.37% 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 |
| Invitrogen | IVGN | – 25.24 |
8413 | 1752 |
| Imclone Systems |
IMCL | + 21.59 |
15193 | 6748 |
| Retek Inc. |
RETK | + 20.67 |
1971 | 185 |
| Silicon Labs. |
SLAB | + 18.57 |
990 | 283 |
| Novellus Systems |
NVLS | + 14.01 |
11017 | 3626 |
| Veritas | VRTS | + 10.39 |
11056 | 3932 |
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 |
| Thoratec Labs |
THOR | 113.3 | 78.5 | 83.2 | 49.6 |
| Perkin Elmer |
PKI | 75.7 | 52.7 | 69.1 | 42.4 |
| Sigma-Aldrich | SIAL | 36.1 | 28.6 | 36.2 | 27.4 |
| FTI Consulting |
FCN | 51.6 | 42 | 76.7 | 51.5 |
| Viropharma | VPHM | 115 | 99.2 | 82 | 64.3 |
| Amdocs | DOX | 64.1 | 55.6 | 75 | 49.2 |
Spike Down
| Name | Symbol | IV | Previous IV |
High IV |
Low IV |
| Interpublic Group |
IPG | 36.6 | 54.5 | 51.3 | 34.8 |
| Metro-Goldwyn-Mayer | MGM | 30.3 | 42.1 | 75.8 | 42.6 |
| Invitrogen | IVGN | 54.4 | 69.7 | 66.3 | 49 |
| Marvell Technology |
MRVL | 82.5 | 97.1 | 119.8 | 74.6 |
| Cintas | CTAS | 33.2 | 38.5 | 50.7 | 31.9 |
| Allied Capital |
ALD | 27.9 | 32.2 | 30 | 21.5 |
Please use stops on every trade!