Friday’s Options Alerts
It was a pretty dull day as the
markets just drifted all day long after the lukewarm economic numbers. The
Philly business index dipped to a reading of 9.1 compared to a reading of 12.3
in April. April housing starts also fell to 5.4% to 1.54 million, this was below
expectations of 1.64 million. Internet, telecoms, and oil stocks were particularly
strong today. Drug and biotech issues were under pressure today after Imclone’s
(
IMCL |
Quote |
Chart |
News |
PowerRating) disappointing results. In after-hours news, Dell Computer
(
DELL |
Quote |
Chart |
News |
PowerRating)
delivered first-quarter results that beat expectations on revenue and earnings
fronts. They are also looking for revenues to increase 8% next quarter. For more information on today’s action, please refer to
the market
recap.
The VIX
(
$VIX.X |
Quote |
Chart |
News |
PowerRating) opened near
its highs and closed near the midpoint of its range. This shift in intraday
sentiment suggests a decrease in fear. No CVR signals were triggered by the VIX
today. The VXN
(
$VXN.X |
Quote |
Chart |
News |
PowerRating) had an inside day today. It opened and closed near the
midpoint of the its range. This shift in intraday sentiment also suggests a
decrease in fear. No CVR signals were triggered by the VXN either. Â
Points of Significance:
NPS Pharmaceuticals
(
NPSP |
Quote |
Chart |
News |
PowerRating) dropped
27% on over 20 times its average volume. The shares were hammered after
the company announced that it is experiencing a supply shortage with its
osteoporosis drug, Preos. The company also revealed in its 10Q that its CFO
had resigned.  Â
Imclone Systems
(
IMCL |
Quote |
Chart |
News |
PowerRating) dropped
13% on over double its average volume. The company reported a loss that was 2
cents greater than expectations on revenues that fell 34%. The company is also
being investigated for fraudulent promotion of its cancer drug Erbitux. The
shares appear to be breaking down from a three month long head and shoulders
top. Â
Ryland Group
(
RYL |
Quote |
Chart |
News |
PowerRating) fell almost 5% on
heavy volume. The shares of the homebuilder slumped after the weaker than
expected April housing starts report. The chart looks somewhat bearish as it did
not take out its high after the pullback. However there is good support near the
100.70 level.
Â
| Volatility Index |
Close | Net Change |
Signals/Direction | % Above/Below 10 Day Moving Average |
Significance |
| VIX | 21.45 | DOWN 0.68 |
NONE | 8.37%Â Below |
Near Extreme |
| VXN | 44.52 | DOWN 0.88 |
NONE | 5.36 %Â 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 |
| NPS Pharmaceuticals |
NPSP | – 27.71 |
2025 | 187 |
| Imclone Systems |
IMCL | – 13.22 |
3595 | 891 |
| CMS Energy |
CMS | – 11.49 |
2579 | 153 |
| CableVision Systems |
CVC | – 9 |
7646 | 1293 |
| Photronics | PLAB | – 5.29 |
474 | 105 |
| Ryland Group |
RYL | – 4.77 |
2074 | 501 |
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 |
| Allied Capital Corp. |
ALD | 50.5 | 36.2 | 32.5 | 21.5 |
| CMS Energy |
CMS | 71 | 52.4 | 35.6 | 26 |
| Dominion Resources |
D | 24.6 | 19.7 | 28.5 | 15.4 |
| Trinity Industries |
TRN | 47.9 | 38.4 | 33.2 | 27.4 |
| NPS Pharmaceuticals |
NPSP | 82.6 | 69.4 | 76.3 | 50.3 |
| Marvell Technology |
MRVL | 73.8 | 64.1 | 90.6 | 63.6 |
Spike Down
| Name | Symbol | IV | Previous IV |
High IV |
Low IV |
| Financial Sector SPDRs |
XLF | 9 | 12.7 | 26.3 | 13.9 |
| Royal Dutch Petroleum |
RD | 21.6 | 26.6 | 33.7 | 20.7 |
| Commerce Bancorp. |
CBH | 20.9 | 24.4 | 27.1 | 20.4 |
| Minnesota Mining & Mfg. |
MMM | 20 | 23 | 39.1 | 22.8 |
| United Parcel Service |
UPS | 12.2 | 13.7 | 21.6 | 11.5 |
| Belo | BLC | 30.1 | 33.3 | 39.3 | 29.7 |
Please use stops on every trade!