Friday’s Options Alerts
The major indices moved higher again for the second straight session.
Trading
was once again choppy as the indices headed lower at the open, ran up, vacillated
back and forth for much of the session, and then rallied strongly during the
final hour. At the close, the Dow
(
$INDU |
Quote |
Chart |
News |
PowerRating) gained 96.41 points or 1.07%. The index is back above the psychological
9000 level and is standing at a six-week high. The S&P
(
$SPX.X |
Quote |
Chart |
News |
PowerRating)
jumped 13.34 points or 1.40%, it too stands at a six-week high. In addition, it is
approaching a 100% projection of the up leg from the July 24 low. The Nasdaq
(
$COMPX |
Quote |
Chart |
News |
PowerRating)
gained 13.69 points or 0.97%,
it stands at a five-week high.Â
On the sector front, airlines
(
$XAL.X |
Quote |
Chart |
News |
PowerRating) were
once again the top performers, gaining 5.17%. It closed near a 38.2%
resistance from its July 1 high. Oil service
(
$OSX.X |
Quote |
Chart |
News |
PowerRating) issues gained
4.69%, Internets
(
$DOT.X |
Quote |
Chart |
News |
PowerRating) up 3.40%, and software
(
$GSO.X |
Quote |
Chart |
News |
PowerRating) up
3.26%. The worst-performing sector of the day was semiconductors
(
$SOX.X |
Quote |
Chart |
News |
PowerRating),
down 1.25%. This lack of participation from the semis is bearish.
The VIX
(
$VIX.X |
Quote |
Chart |
News |
PowerRating) opened near
the midpoint of its range to close near the lows of the day. This was the
eleventh consecutive day that the VIX closed below its open. Once again, this shift
in intraday sentiment shows a drop in fear. Once again the VIX triggered CVR 3 sell and 6 sell signals. The VXN
(
$VXN.X |
Quote |
Chart |
News |
PowerRating) gapped
higher, opened near its highs, and closed near
the lows of the day. This shift
in intraday sentiment also shows a drop in fear. The VXN also triggered another
CVR 3 sell today. The VXN is not back to its last May levels. Volatility is
getting somewhat cheap.
Points of Significance:
| Volatility Index |
Close | Net Change |
Signals/Direction | % Above/Below 10 Day Moving Average |
Significance |
| VIX | 30.96 |
DOWN 0.67 |
CVR 3, 6 SELLS |
11.16 % Below |
At Extreme |
| VXN | 45.00 |
DOWN 1.11 |
CVR 3 SELLS |
12.38 % Below |
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 |
| Panera Bread |
PNRA |
– 11.44 |
1437 |
582 |
| PeopleSoft |
PSFT |
+ 9.23 |
13476 |
4048 |
| American Home Products |
WYE |
+ 7.39 |
1001 |
4981 |
| Electronics Boutique |
ELBO |
+ 7.20 |
434 |
103 |
| Synopsys |
SNPS |
+ 7.38 |
3081 |
1299 |
| Cree |
CREE |
– 7.27 |
2578 |
1033 |
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 |
| Boise Cascade |
BCC |
53 |
42.7 |
44.4 |
29.2 |
| Golden State Bancorp |
GSB |
24.6 |
20 |
35.1 |
18.4 |
| Radio Shack |
RSH |
56.2 |
46.5 |
56 |
33.2 |
| Oakley |
OO |
59 |
49 |
57.9 |
43 |
| Guitar Center |
GTRC |
60.4 |
51.4 |
57.1 |
49.2 |
| Petco Animal Supplies |
PETC |
54.6 |
48 |
62.8 |
32.1 |
Spike Down
| Name | Symbol | IV | Previous IV |
High IV |
Low IV |
| MeriStar Hospitality |
MHX |
34.5 |
46.1 |
41.9 |
19.5 |
| Eaton Vance |
EV |
49 |
61.3 |
47.2 |
25.8 |
| Meadwestvaco |
MWV |
46.9 |
58 |
40.7 |
26.5 |
| Saks Fifth Avenue |
SKS |
58 |
69.2 |
41.4 |
35.7 |
| Home Depot |
HD |
36.4 |
43.2 |
56.3 |
24.5 |
| United Surgical Partners |
USPI |
43.1 |
50.8 |
70.5 |
35.5 |
Please use stops on every trade!