Monday’s Options Alerts
Stocks
recovered from an early morning decline and shed the majority of losses by the
close. The Naz and the S&P ended higher, while the Dow was
dragged down after Honeywell
(
HON |
Quote |
Chart |
News |
PowerRating) warned on its third-quarter and full-year
results. At the
close, the Dow
(
$INDU |
Quote |
Chart |
News |
PowerRating) dropped 66.72 points, or 0.79%, the majority of the losses was due
to Honeywell. The S&P
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) gained 2.9 points, or 0.32%, and finally,
the Nasdaq
(
$COMPX |
Quote |
Chart |
News |
PowerRating) gained 11.72 points, or 0.91%, as Adobe
(
ADBE |
Quote |
Chart |
News |
PowerRating)
reported better than expected results. All three major indices fell for the
third straight week. The Dow lost 115 points this week, or 1.36%, the S&P and
the Naz only finished four points lower for the week. It has been a
strange couple of weeks with many market swings on low volume. Expect more of the same as
Yon Kippur falls on Monday.
Biotechs
(
$BTK.X |
Quote |
Chart |
News |
PowerRating), up 2.06%, Internets
(
$DOT.X |
Quote |
Chart |
News |
PowerRating), up
1.57%, and broker dealers
(
$XBD.X |
Quote |
Chart |
News |
PowerRating) were the best performing sectors
of the day. Meanwhile, networking
(
$NWX.X |
Quote |
Chart |
News |
PowerRating), down 4.38% (thanks to Lucent),
airlines
(
$XAL.X |
Quote |
Chart |
News |
PowerRating), down 3.35%, and telecoms
(
$XTC.X |
Quote |
Chart |
News |
PowerRating), down 2.45%, were
the worst performing sectors.
Mixed economic data continued to roll in
today as consumer confidence continued to slip while retail sales rose. For the
fourth straight month the University of Michigan sentiment index declined. The
index fell to 86.2 from 87.6. Retail sales in August rose 0.8%, beating
expectations of a 0.5% gain.
The VIX
(
$VIX.X |
Quote |
Chart |
News |
PowerRating) gapped up, opened near
its highs and closed near the lows of the day. This shift in intraday sentiment
shows a drop in fear. Today’s action triggered a CVR
1 buy signal. The VXN
(
$VXN.X |
Quote |
Chart |
News |
PowerRating) gapped
up, opened
near its highs and closed near the lows of the day. This shift
in intraday sentiment also shows a drop in fear. Today’s VXN action also
triggered a CVR
1 buy signal.
Points of Significance:
| Volatility Index |
Close | Net Change |
Signals/Direction | % Above/Below 10 Day Moving Average |
Significance |
| VIX | 39.26 |
DOWN 1.46 |
CVR I BUY |
0.004% Below |
Not At Extreme |
| VXN | 5.976.44 |
DOWN 0.47 |
CVR I BUY |
0.006 % 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 |
| Gtech Holdings |
GTK |
+ 18.55 |
1160 |
264 |
| Honeywell |
HON |
– 16.86 |
20796 |
1616 |
| Adobe Systems |
ADBE |
+ 12.57 |
6797 |
870 |
| InVision Technologies |
INVN |
+ 5.92 |
13404 |
1976 |
| Intersil Holdings |
ISIL |
+ 5.58 |
8123 |
1142 |
| Biogen |
BGEN |
– 3.46 |
10065 |
3713 |
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 |
| Western Resources |
WR |
52.0 |
43.6 |
56.6 |
23.5 |
| Georgia Pacific |
GP |
73.3 |
63.8 |
71.1 |
34.4 |
| J.D. Edwards |
JDEC |
96.5 |
86.0 |
94.5 |
62.6 |
| Allegheny Energy |
AYE |
86.1 |
76.9 |
77.7 |
20.0 |
| Brinker Int’l |
EAT |
48.5 |
43.6 |
45.0 |
25.9 |
| Transkryotic Therapies |
TKTX |
82.3 |
74.1 |
81.7 |
55.9 |
Spike Down
| Name | Symbol | IV | Previous IV |
High IV |
Low IV |
| Progress Energy |
PGN |
27.1 |
32.5 |
33.8 |
14.5 |
| QuickSilver |
ZQK |
53.4 |
63.4 |
64.3 |
45.3 |
| Cendant |
CD |
53.9 |
62.1 |
86.0 |
33.5 |
| Dominion Resources |
D |
35.7 |
40.9 |
49.5 |
15.4 |
| Gtech Holding |
GTK |
50.6 |
57.4 |
70.0 |
29.9 |
| Exxon Mobil |
XOM |
34.7 |
38.7 |
46.7 |
15.7 |
Please use stops on every trade!