Friday’s Options Alerts
More after-Christmas buying hit the markets today,
as investors picked up stocks
in anticipation of an economic recovery next year.
Positive comments about Advanced Micro Devices
(
AMD |
Quote |
Chart |
News |
PowerRating) also helped boost the
markets.
The VIX
(
$VIX.X |
Quote |
Chart |
News |
PowerRating) opened at its highs and closed near its lows of
the day. The intraday shift in sentiment
suggests that fear is declining.
A CVR
VI sell signal was triggered today. Once
again, the VIX is still
getting more and more oversold, which
means that the market is still continuing to become more overbought. The VIX is
in precariously low territory, which suggests that complacency is setting in.
Continue to use caution as we could be heading for a top.
The VXN
(
$VXN.X |
Quote |
Chart |
News |
PowerRating)
exhibited similar action as the VIX as it opened near its highs and closed near
its lows for the day. This intraday shift in sentiment also
suggests that fear is
declining. The VXN did not trigger any CVR signals today. However it
is approaching oversold territories.
Points of Significance:
FuelCell
(
FCEL |
Quote |
Chart |
News |
PowerRating) jumped 17% on well over double its
average volume and took out a downward trendline. The company announced the site
of their first power plant in Asia. Their options traded almost seven times
their average volume. There is heavy activity in the January 17.50 and 20 calls.
SeeBeyond Technology
(
SBYN |
Quote |
Chart |
News |
PowerRating) gapped out of a pullback on heavy volume today.
Electronic Data Systems
(
EDS |
Quote |
Chart |
News |
PowerRating) announced that it would begin using SeeBeyond’s
integration software products, which it is already selling to its customers.
There is somewhat heavy activity in the February 7.50 calls.
ImClone Systems
(
IMCL |
Quote |
Chart |
News |
PowerRating)
dropped 8% and closed on its .50 retracement level from its September
low to its Dec. 6 high. There is speculation that the FDA will send a
“refuse to file” letter concerning ImClone’s
(
IMCL |
Quote |
Chart |
News |
PowerRating) cancer drug, C225. Options on
ImClone traded
over three times its average volume.
| Volatility Index |
Close | Net Change |
Signals/Direction | % Above/Below 10 Day Moving Average |
Significance |
| VIX | 22.28 | DOWN 0.65 | CVR VI Sell |
7.89 % Below | Not At Extreme |
| VXN | 47.46 | DOWN 1.60 |
NONE | 5.93 % 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 |
| FuelCell Energy | FCEL | + 17.37 | 1406 | 204 |
| Amylin Pharmaceuticals | AMLN | – 10.10 | 609 | 103 |
| SeeBeyond Technology | SBYN | + 9.28 | 624 | 127 |
| ImClone Systems | IMCL | – 8.36 | 13647 | 4293 |
| Gateway | GTW | + 7.29 | 4010 | 1461 |
| Lumenis Ltd. | LUME | + 6.82 | 1565 | 197 |
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 |
| ImClone Systems | IMCL | 81.3 | 71.8 | 86.6 | 45 |
| Allied Capital Corp | ALD | 23 | 20.6 | 30 | 24.5 |
| Silicon Laboratories | SLAB | 87.8 | 79 | 102.7 | 68.6 |
| Bristol Myers Squibb | BMY | 41.7 | 37.7 | 49.9 | 25.3 |
| Golden State Bancorp | GSB | 33.4 | 30.3 | 38.1 | 20.1 |
| Expedia Inc. | EXPE | 61.9 | 56.6 | 100.2 | 49.7 |
Spike Down
| Name | Symbol | IV | Previous IV |
High IV |
Low IV |
| HotJobs.com | HOTJ | 31.8 | 52.1 | 106.6 | 54.9 |
| ServiceMaster | SVM | 21.9 | 28.6 | 33.8 | 21.5 |
| Dal-Tile International |
DTL | 25.8 | 33 | 32.3 | 27.1 |
| Industrial Sector SPDRs |
XLI | 21.1 | 26.8 | 42.3 | 19 |
| Niagara Mohawk Power |
NMK | 19.6 | 24.3 | 36.2 | 20.6 |
| Wisconsin Energy |
WEC | 19.1 | 23.5 | 23.5 | 20.2 |
Please use stops on every trade!