Friday’s Options Alerts…
The broad-based rally fizzled today as investors
decided to take profits after this week’s run up. The Dow
(
$INDU |
Quote |
Chart |
News |
PowerRating) and S&P 500
(
$SPX |
Quote |
Chart |
News |
PowerRating) ended slightly higher while the Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) closed
slightly lower. Today the VIX
(
$VIX.X |
Quote |
Chart |
News |
PowerRating) opened and closed near the highs
of its range. This Intraday shift in sentiment suggests that fear is once again returning to the markets.
After yesterday’s CVR
II and CVR
VI sell signals, we have a CVR
V sell signal to add to for today. The VXN
(
$VXN.X |
Quote |
Chart |
News |
PowerRating) opened and
closed in the top third of its range today. This intraday shift in sentiment also suggests that
fear is again mounting. Also, the fact the VXN closed above its open
suggests that this shift is more prominent. Adding on to yesterday’s CVR
V sell signal, we triggered both a CVR
II and VI sell signals today. With multiple CVR sell signals in place,
there is a good chance that the markets will pull back.
Points of Significance:
Barnes & Noble
(
BKS |
Quote |
Chart |
News |
PowerRating) tumbled almost 36%
today after it warned of lower earnings for the year. Options volume was heavy as it
traded over 10 times its average daily contract volume. Barnes & Noble’s
implied volatility is at a new high. Genesis Microchip
(
GNSS |
Quote |
Chart |
News |
PowerRating) pulled back
to its 20-day moving average today on three times its average trading volume.
Rumors of a negative outcome in an infringement suit sent the stock down 14%
today. Corning
(
GLW |
Quote |
Chart |
News |
PowerRating) broke below its 20-day moving average today on six
times its average volume today. Corning announced today that they have plans to
issue $600 million worth of convertible debt. Options volume was
heavy as it traded over double its average contract volume. Sepracor
(
SEPR |
Quote |
Chart |
News |
PowerRating)
gapped down to its 20-day moving average today on six times its average volume.
Sepracor also announced plans to issue some $400 million in convertible debt.
Sepracor’s option volume was heavy as it traded 10 times its average contract
volume. CV Therapeutics
(
CVTX |
Quote |
Chart |
News |
PowerRating) continued to break down from a head &
shoulders top today on triple its average volume today. CV’s implied volatility
is at a new high.
| Volatility Index |
Close | Net Change |
Signals/Direction | % Above/Below 10 Day Moving Average |
Significance |
| VIX | 29.88 | – 0.59 | CVR V |
7.20 % Under | Not At Extreme |
| VXN | 58.75 | + 1.55 | CVR II, VI |
1.67 % Under |
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 |
| Barnes & Noble |
BKS | – 35.71 | 2678 | 239 |
| Genesis Microchip |
GNSS | – 14.10 |
3223 | 1417 |
| Corning | GLW | – 11.54 |
12598 | 5527 |
| CIMA Labs |
CIMA | – 11.32 |
816 | 309 |
| Albany Molecular Research |
AMRI | – 10.54 | 394 | 117 |
| Sepracor | SEPR | – 9.52 |
3890 | 379 |
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 |
| Barnes & Noble | BKS | 64.1 | 50.7 | 58.6 | 36.2 |
| Taro Pharmaceuticals | TARO | 66.1 | 55.7 | 84.9 | 58.3 |
| CV Therapeutics | CVTX | 145.2 | 125.5 | 143.7 | 61.5 |
| Hasbro | HAS | 50.1 | 44 | 59.1 | 31.2 |
| Laboratory Corp of America |
LH | 49.7 | 43.8 | 52.4 | 40.9 |
| Bard Inc. | BCR | 36.4 | 32.6 | 53.2 | 19 |
Spike Down
| Name | Symbol | IV | Previous IV |
High IV |
Low IV |
| ServiceMaster | SVM | 20.5 | 28.7 | 37.7 | 21.5 |
| Manulife Financial Corporation |
MFC | 33.1 | 43.6 | 40 | 21.4 |
| Orion Power Holdings |
ORN | 22.4 | 27.9 | 69.8 | 20.2 |
| Reckson Associates Realty |
RA | 25.5 | 31.4 | 31.9 | 21.5 |
| Mead Corp. | MEA | 45 | 54 | 50 | 27.8 |
| Newport News Shipbuilding |
NNS | 20.8 | 24.5 | 30.7 | 15.1 |
Please use stops on every trade!