Friday’s Options Alerts
Despite a better-than-expected jobless claims report and
same store sales numbers, Dow
(
$INDU |
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Chart |
News |
PowerRating),
S&P
(
SPX.X |
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Chart |
News |
PowerRating), and Nasdaq
(
$COMPX |
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Chart |
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PowerRating) ended in the red for the fifth
straight day. Percentage wise, the Nasdaq was the biggest loser
as it was weighed down by Cisco. For more
information on today’s action, please refer to the market
recap. The VIX
(
$VIX.X |
Quote |
Chart |
News |
PowerRating) opened and closed towards the upper half of
the range. There was no significant shift in intra-day sentiment. Once again, we
have another CVR III buy signal, plus we also triggered a CVR II buy
signal. The VXN
(
$VXN.X |
Quote |
Chart |
News |
PowerRating) opened near the midpoint of the range and
closed right above the open. This intraday shift in sentiment also suggests that
fear is still rising. The VXN triggered any CVR III buy signal today and
we are close to getting a CVR II buy signal. With both volatility indices are in
overbought areas and with two CVR signals in effect, a bounce off these oversold
conditions is likely.
Points of Significance:
Footwear and apparel maker Timberland
(
TBL |
Quote |
Chart |
News |
PowerRating)
dropped 10% on over five times its average volume. The company reported a large unanticipated
drop in their fourth quarter earnings. Timberland attributed the drop to a soft
economy, strong dollar, and higher leather prices. The shares did manage to
bounce off their .618 retracement level from the September lows.
Genesis Microchip
(
GIS |
Quote |
Chart |
News |
PowerRating) dropped over 17% on
triple its average volume. No news was cited. However Genesis and the rest of
the chip stocks started to break down by the end of the day. Check out the head
& shoulders top in the SOX. Look for opportunities in outright put purchases
and put spreads.
Andrx Group
(
ADRX |
Quote |
Chart |
News |
PowerRating) dropped as much as 16%
intraday, but manage to close the day down over eight percent on over four
times its average volume. The shares are under pressure today
as the company is currently engaged in a court case for the right to sell an imitation
heartburn relief drug.
| Volatility Index |
Close | Net Change |
Signals/Direction | % Above/Below 10 Day Moving Average |
Significance |
| VIX | 27.68 | DOWN 0.47 |
CVR II, III Buy |
10.72 % Above |
At Extreme |
| VXN | 50.90 | UP 1.93 |
CVR III Buy |
11.33 % Above |
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 |
| Genesis Microchip |
GNSS | – 17.70 | 13305 | 4972 |
| InVision Technologies |
INVN | – 13.13 |
9801 | 4803 |
| Timberland | TBL | – 10.16 | 1251 | 138 |
| ANDRX Corp. |
ADRX | – 8.68 |
5637 | 2112 |
| FEI | FEIC | – 7.84 | 508 | 103 |
| KLA Tencor |
KLAC | – 7.55 |
19165 | 8067 |
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 |
| Expedia Inc. | EXPE | 70.6 | 45 | 100.2 | 44.7 |
| Kinder Morgan Energy |
KMP | 54.2 | 39.6 | 32.3 | 20.2 |
| Symantec | SYMC | 69.1 | 54.7 | 79.3 | 47.6 |
| TJX Companies |
TJX | 36.9 | 29.8 | 41.1 | 30.1 |
| Applied Materials |
AMAT | 65.5 | 53.5 | 84.2 | 50.2 |
| Hasbro | HAS | 49.8 | 41.5 | 59.1 | 31.2 |
Spike Down
| Name | Symbol | IV | Previous IV |
High IV |
Low IV |
| AT&T Canada |
ATTC | 42.5 | 83.3 | 29.1 | 12.2 |
| Corporate Executive Broad |
EXBD | 54.3 | 85 | 74.8 | 55.2 |
| QLT Phototherapeutics |
QLTI | 66.3 | 95.8 | 78 | 58 |
| Overture | OVER | 101.2 | 142.8 | 113.6 | 74 |
| Orthodontic Centers |
OCA | 43.1 | 55.8 | 57.9 | 35.3 |
| Cendant | CD | 47.4 | 55.4 | 73.4 | 34.9 |
Please use stops on every trade!