Friday’s Options Alerts
Stocks started the day weaker
on the
heels of another revenue warning from Advanced Micro Devices
(
AMD |
Quote |
Chart |
News |
PowerRating). However
the bleeding stopped as we headed into the final hour of trading on the pre
Fourth of July trading day. The market’s ability to shrug off AMD’s negative news is
surely a positive sign. In the end, the major averages broke a sharp two-day
losing streak as the Dow
(
$INDU |
Quote |
Chart |
News |
PowerRating) and S&P
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) gained 0.52%
and 0.62%, respectively. The Nasdaq
(
$COMPX |
Quote |
Chart |
News |
PowerRating) was the strongest index as it
gained 1.64%. On the economic front, weekly initial jobless claims dropped 11K
to 382K. This was the lowest level since last March as looks like the
labor market is slowly healing. For more information on today’s action, please refer to
the market
recap.
The VIX
(
$VIX.X |
Quote |
Chart |
News |
PowerRating) opened
near the lower half of its range and closed just underneath the open. This shift
in intraday sentiment again shows fear dropping. Today’s action triggered CVR 1
and 5 buy signals. The VXN
(
$VXN.X |
Quote |
Chart |
News |
PowerRating) opened near the lower half of its
range and closed slightly below its open. This shift in intraday sentiment
shows a decrease in fear. The VXN triggered another CVR 5 buy signal.
Points of Significance:
Affymetrix
(
AFFX |
Quote |
Chart |
News |
PowerRating) dropped over
11% on triple its average volume.
The shares broke down from a five-month base and ended near their October
lows.
Gtech Holdings
(
GTK |
Quote |
Chart |
News |
PowerRating)
dropped 10% on more than four times its average volume. The shares broke below
its 200-day moving average and its 61.8% retracement level.
Home Depot
(
HD |
Quote |
Chart |
News |
PowerRating) jumped 9% on heavy
volume today. No news was cited today. The shares are beginning to stage a
counter trend rally. There is strong resistance at coincidence of its 20-day
moving and its 50% retracement level.
| Volatility Index |
Close | Net Change |
Signals/Direction | % Above/Below 10 Day Moving Average |
Significance |
| VIX | 33.31 | DOWN 0.38 |
CVR 1, 5 BUY |
6.05% Above | Not At Extreme |
| VXN | 60.06 | UP 0.49 |
CVR 5 BUY |
0.78 % 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 |
| Affymetrix | AFFX | – 11.39 |
2984 | 233 |
| Gtech Holdings |
GTK | – 10.36 |
2499 | 234 |
| Emulex | ELX | + 10.10 |
10025 | 1564 |
| Marvell Technology |
MRVL | + 10.28 |
5441 | 1606 |
| Home Depot |
HD | + 9.18 |
8485 | 2502 |
| SPX Corp. |
SPW | – 7.70 |
1846 | 166 |
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 |
| Sempra Energy |
SRE | 48.2 | 37.4 | 35.7 | 25 |
| Cincinnati Financial |
CINF | 32.1 | 25 | 32 | 19.7 |
| Sigma Aldrich |
SIAL | 36.4 | 28.5 | 34 | 27.6 |
| Dianon Systems |
DIAN | 90 | 72.1 | 68.7 | 42 |
| Pathmark Stores |
PTMK | 46.9 | 37.8 | 38 | 21.2 |
| Vivendi Universal |
V | 124.9 | 101.4 | 79.1 | 38.7 |
Spike Down
| Name | Symbol | IV | Previous IV |
High IV |
Low IV |
| American Water Works |
AWK | 12.8 | 15.3 | 15.2 | 8.7 |
| Rosyln Bancorp |
RSLN | 25.7 | 28.4 | 34.9 | 21.4 |
Please use stops on every trade!