Tuesday’s Options Alerts
Following the short-term
high last Thursday, stocks
appeared to continue their decline, but the major indices fought back and staged
a early afternoon rally to turn things around. All major indices
started the day lower and at one time, the Dow was down over 116 points, the
S&P down 20 points, and the Nasdaq was down 10 before heading back into
positive territory.
At the close, the Dow
(
$INDU |
Quote |
Chart |
News |
PowerRating) gained 46 points or
0.50%. The Dow did briefly breach its 50-day moving average before recovering.
The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) gained 7 points or 0.75%, and the Nasdaq
(
$COMPX |
Quote |
Chart |
News |
PowerRating)
gained 0.80 points.
Volume was lackluster as next Monday is Labor Day. Volume on
the NYSE was just 960 million. Gold
(
$XAU.X |
Quote |
Chart |
News |
PowerRating) up 5.74%, networking
(
$NWX.X |
Quote |
Chart |
News |
PowerRating) up 5.17%, and telecoms
(
$XTC.X |
Quote |
Chart |
News |
PowerRating) up 3.22% Neworkers were
boosted after Soundview upgraded Ciena
(
CIEN |
Quote |
Chart |
News |
PowerRating) to “outperform”
from “neutral.” On the downside, Internets
(
$GIN.X |
Quote |
Chart |
News |
PowerRating) down 1.77%
and biotechs
(
$BTK.X |
Quote |
Chart |
News |
PowerRating), down 0.55, pulled back after recent gains.
After a lack of economic reports, we have a barrage of reports this week.
Tomorrow we have durable goods and consumer confidence. Friday we have the
revised Michigan consumer sentiment numbers. Keep an eye on how the market
reacts to these numbers. Housing market data released today showed July existing
home sales increased as expected, rising 4.5% to an annual rate of 5.33
million. New home sales jumped 6.7% or an annual rate of 1.017 million, far
surpassing the expected 975K level.
The VIX
(
$VIX.X |
Quote |
Chart |
News |
PowerRating) gapped up, opened near
its highs and close near the lows of the day. This shift in intraday sentiment
again suggests a drop in fear The VIX triggered a CVR 1 buy today. The VXN
(
$VXN.X |
Quote |
Chart |
News |
PowerRating) gapped
higher, opened near the midpoint of its range, and closed near the lows of the
day. This shift
in intraday sentiment also shows a drop in fear. The VXN also triggered a CVR 1
buy signal.
Points of Significance:
| Volatility Index |
Close | Net Change |
Signals/Direction | % Above/Below 10 Day Moving Average |
Significance |
| VIX | 32.29 | DOWN 0.52 | CVR 1 BUY | 3.27 % Below |
Not At Extreme |
| VXN | 48.42 | UP 0.80 | CVR 2 BUY |
2.12 % 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 |
| Silicon Labortories | SLAB |
– 4.28 | 1021 | 324 |
| General Dynamics | GD |
– 4.23 | 7539 | 2542 |
| Nautilus Group | NLS |
+ 3.05 | 1999 | 827 |
| TJX Companies | TJX |
+ 3.79 | 6631 | 205 |
| Circuit City CarMax | KMX |
+ 2.54 | 1911 | 265 |
| Manhattan Associates | MANH |
+ 2.44 | 1148 | 117 |
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 |
| TECO Energy | TE |
52 | 44.4 | 48.8 | 20.3 |
| Intermune | ITMN |
165 | 142.9 | 157.7 | 64.2 |
| General Dynamics | GD |
42.9 | 37.4 | 51.3 | 23.9 |
| Genentech | DNA |
64.2 | 56.7 | 81.4 | 35.7 |
| Manhattan Associates | MANH |
75.4 | 67.5 | 114.7 | 69.5 |
| Urban Outfitters | URBN |
66.4 | 59.2 | 88.7 | 47.7 |
Spike Down
| Name | Symbol | IV | Previous IV |
High IV |
Low IV |
| Kinder Morgan | KMR |
35.8 | 40.5 | 47.9 | 25.8 |
| First Tennessee National |
FTN |
25.5 | 28.4 | 39.8 | 18.4 |
| National Commerce | NCF |
27.4 | 30.4 | 36.6 | 21.6 |
| Eaton Vance | EV |
44.8 | 48.8 | 52.2 | 25.8 |
| J.P. Morgan | JPM |
51.4 | 55.9 | 79.5 | 29.4 |
| Household International | HI |
60.9 | 65.9 | 73.8 | 30 |
Please use stops on every trade!