Monday’s Options Alerts
Price action on the major
indexes was choppy and narrow as it sold off on the open, hit the day’s low by
11:30 a.m. ET, then grinded higher for the rest of the session.
The Dow Jones Industrial
Average ($INDU.X)
closed +0.54% at 7986.02. The S&P 500 ($SPX.X)
closed +0.24% at 845.39. The Nasdaq ($COMPQ)
closed +0.38% at 1221.08.
The indices’ narrow ranges
showed some indecisiveness on heavy volume, though managed to hold key support
as outlined by
Derrick Hobbs with the Diamonds (DIA).
Next week will bring more earnings announcements from some key companies and
several important economic report releases.
The biggest gainers on the day
were telecoms ($IXTC),
+3.21%, forest and paper ($FPP),
+2.92%, and chemicals ($CEX),
+1.86%.
The biggest losers of the day
were oil services ($OSX),
-1.91%, utilities ($UTIL),
-1.49%, and semiconductors ($SOX),
-1.42%.
The Semiconductor Index
($SOX),
-1.42% at 248.87, hit a fresh four-year low, and the Broker Dealer Index
($XBD),
-5.58% at 368.73, closed out in a "doji" formation.
U.S. Treasury Bonds
closed unchanged at 114 ’08.
In economic news, the
Treasury budget came in at -54.7 billion vs. an expected -$55.0 billion. The
market had no apparent reaction to the news.
Volume was well above
average at 1,739,155,000
on the NYSE, and 1,775,980,000
on the Nasdaq.
Market breadth was positive,
with NYSE advancing issues over declining issues by a ratio of 1.10, and up
volume over down volume by a 1.25 ratio. Nasdaq advancing issues over declining
issues came in at 1.06, and up volume beat down volume by a 1.28 ratio.
The
VIX was -1.61 at 44.55. The
TRIN was -1.17 at 0.88.
Leading the Dow were Alcoa (AA),
+4.97% at 21.12, Walt Disney (DIS),
+2.90% at 15.24, International Paper (IP),
+2.78% at 33.96, Boeing (BA),
+2.70% at 36.48, and DuPont (DD),
+2.68% at 39.38.
Weighing the Dow down, photo
giant Eastman Kodak (EK),
-4.62% at 26.63, was downgraded by Bear Stearns to "underperform" from "peer
perform" based on anticipated moderate growth upon a recovery of the economy.
Tobacco company Phillip
Morris (MO),
-4.49% at 42.69, sold off after a federal judge certified a nationwide
punitive-damage class-action suit against the industry.
Points of Significance:
Volatility Index |
Close |
Net Change |
Signals/Direction |
% Above/Below 10 Day Moving Average |
Significance |
|
( $VIX.X | Quote | Chart | News | PowerRating) |
44.55 | Down 1.61 | CVR II, III, and VI buy | 9.53% Above |
At Extreme |
|
( $VXN.X | Quote | Chart | News | PowerRating) |
59.32 | Down 3.44 | None | 3.29 % 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 |
| Qualcomm | ( QCOM | Quote | Chart | News | PowerRating) |
+9.16 | 24538 | 10642 |
Transkaryotic Therapies |
( TKTX | Quote | Chart | News | PowerRating) |
-8.14 |
3211 |
568 |
| Amazon.com | ( AMZN | Quote | Chart | News | PowerRating) |
-7.84 | 47390 | 4905 |
Texas Instruments |
( TXN | Quote | Chart | News | PowerRating) |
-7.33 |
25474 |
5888 |
| First Data Corp. | ( FDC | Quote | Chart | News | PowerRating) |
-6.85 | 4641 | 2046 |
RJ Reynolds Tobacco |
( RJR | Quote | Chart | News | PowerRating) |
-6.40 | 2909 | 878 |
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 |
| Pinnacle West Corp. |
( PNW | Quote | Chart | News | PowerRating) |
44.1 | 33.5 | 56.8 | 14.2 |
| H&R Block |
( HRB | Quote | Chart | News | PowerRating) |
56.4 | 44.1 | 50.6 | 31.4 |
| Brookline Bankcorp |
( BRKL | Quote | Chart | News | PowerRating) |
33.6 | 27.2 | 36.3 | 21.3 |
| El Paso Energy |
( EP | Quote | Chart | News | PowerRating) |
95.1 | 79.1 | 145.5 | 31.2 |
| Electronic Data Systems |
( EDS | Quote | Chart | News | PowerRating) |
82.6 | 69.8 | 87.9 | 31.7 |
| Emmis Communications |
( EMMS | Quote | Chart | News | PowerRating) |
63.0 | 53.7 | 84.1 | 42.5 |
Spike Down
Name |
Symbol |
IV |
Previous IV |
High IV |
Low IV |
| Polaris Industries |
( PII | Quote | Chart | News | PowerRating) |
44.5 | 52.6 | 51.9 | 29.0 |
| Titan Corp. |
( TTN | Quote | Chart | News | PowerRating) |
103.3 | 120.5 | 126.9 | 46.8 |
| Crompton Corp. |
( CK | Quote | Chart | News | PowerRating) |
47.4 | 53.7 | 50.1 | 46.4 |
Please use stops on every trade!