Friday’s Options Alerts…
Despite a positive consumer sentiment and a lower
jobless claims report, stocks ended slightly lower on this pre-Thanksgiving day.
The Dow
(
$INDU |
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PowerRating), S&P
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$SPX |
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PowerRating), and Nasdaq
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$COMPQ |
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PowerRating) all
closed slightly lower, but off their lows for the day. The VIX
(
$VIX.X |
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PowerRating) opened
and closed in the lower half of its range for the day. The VIX did head higher
from the open but then worked its way lower to close near its open. This intraday shift in sentiment
suggests that fear is again starting to subside. No CVR signals were triggered
today. The VXN
(
$VXN.X |
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PowerRating) opened and closed near the lows of the day. The VXN’s intraday action also showed that
fear is subsiding. The VXN did not triggered any CVR signals either. Both volatility indices
still suggest that we are in overbought territory.Â
Points of Significance:
Amgen
(
AMGN |
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Chart |
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PowerRating) jumped 7% today on double its average daily trading volume as
the company reported that its earnings will grow faster than previously expected. Amgen
said that they expect sales of their new anemia drug, Aranesp, and their new
arthritis drug, Kineret, to help increase earnings by 20% next year. Options activity was heavy as it traded
over 28,000 contracts compared to its average of 11,000 contracts. Xerox
(
XRX |
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Chart |
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PowerRating)
jumped almost 10% today on over double its average
trading volume. Xerox was upgraded today as the company obtained new financing
and has collected receivables due. Options activity was heavy as it traded over
double its average contract volume.
| Volatility Index |
Close | Net Change |
Signals/Direction | % Above/Below 10 Day Moving Average |
Significance |
| VIX | 25.32 | – 0.81 | NONE | 9.28 % Under | Not At Extreme |
| VXN | 52.68 | + 1.27 |
NONE | 5.25 % 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 |
| Xerox | XRX | + 9.57 | 8286 | 3050 |
| Edison Schools |
EDSN | + 7.33 |
480 | 140 |
| ST. Jude Medical |
STJ | + 7.09 |
1357 | 186 |
| Amgen | AMGN | + 7.02 |
28514 | 11082 |
| Goodyear Tire | GT | – 5.64 | 4967 | 830 |
| Microchip Technology |
MCHP | – 9.70 |
3493 | 784 |
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 |
| Bristol Myers Squibb | BMY | 36.8 | 28 | 49.9 | 25.3 |
| Marshall Industires | MI | 23.3 | 18.1 | 33.3 | 19.1 |
| Southern Co. |
SO | 21.8 | 19.8 | 26.7 | 19.7 |
| AT&T Wireless | AWE | 42.8 | 39 | 53.5 | 38.1 |
| Parametric Technology | PMTC | 71.1 | 64.9 | 91.4 | 62.7 |
| Host Marriott | HMT | 58.8 | 53.8 | 78.6 | 30.5 |
Spike Down
| Name | Symbol | IV | Previous IV |
High IV |
Low IV |
| Thermo Electron | TMO | 46.5 | 58.5 | 59.2 | 32.4 |
| Chirion | CHIR | 49.6 | 61.5 | 59.3 | 39.5 |
| Financial SPDR |
XLF | 22.9 | 27 | 41 | 20.4 |
| Borders Group | BGP | 47.7 | 54.6 | 57.1 | 32.6 |
| Hershey Foods | HSY | 19.7 | 22.5 | 58.5 | 18.3 |
| Hispanic Broadcasting |
HSP | 46.3 | 52.8 | 73.6 | 43.6 |
Please use stops on every trade!