Monday’s Options Alerts
Stocks jumped
today after the better-than-expected employment report. The oversold
conditions and Intel’s better-than-expected sales forecast also had a hand in
today’s rally. At the close, the Dow
(
$INDU |
Quote |
Chart |
News |
PowerRating) retraced all of yesterday’s
loss and gained 143.50 points or 1.73%. The S&P
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) also wiped
out yesterday’s losses and gained 14.77 points or 1.68% and finally,
the Nasdaq
(
$COMPX |
Quote |
Chart |
News |
PowerRating) was the strongest performer as it rallied 44.28
points or 3.53%.
For the week, the Dow closed lower for the second straight week
as it lost 236 points or 2.72%, the S&P lost 23 points or 2.51%, and the Nasdaq lost only 19 points or 1.44%. Volume was once again on the light side. Virtually
every sector participated in the rally with strongest performers being Internets
(
$DOT.X |
Quote |
Chart |
News |
PowerRating) up 6.04%, telecoms
(
$IXTC.X |
Quote |
Chart |
News |
PowerRating) up 5.20% , and
semiconductors
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) up 4.76%. The news of the day was that the
unemployment rate in August fell from 5.9% to 5.7%, the lowest rate
since March. Economists were expecting unemployment to rise to 6%. Stocks sank
once again over mixed economic data, but finished the day off their lows.
Volatility sold off today, the VIX
(
$VIX.X |
Quote |
Chart |
News |
PowerRating) gapped down, opened near
its midpoint, and closed just under its open. This shift in intraday sentiment
shows a drop in fear. No CVR signals were triggered today. The VXN
(
$VXN.X |
Quote |
Chart |
News |
PowerRating)
also gapped lower, opened near its midpoint, and closed just under its midpoint. This shift
in intraday sentiment also shows a drop in fear.
Points of Significance:
| Volatility Index |
Close | Net Change |
Signals/Direction | % Above/Below 10 Day Moving Average |
Significance |
| VIX | 40.04 | DOWN 2.19 |
NONE | 7.57% Above |
Not At Extreme |
| VXN | 56.54 | DOWN 4.18 | NONE | 4.12 % 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 |
| CDW Computer Centers | CDWC |
+ 12.51 | 4675 | 822 |
| RJ Reynolds | RJR |
– 9.73 | 8559 | 382 |
| Nordstroms | JWN |
+ 9.52 | 626 | 168 |
| Take Two Interactive | TTWO |
– 8.44 | 2637 | 862 |
| Veritas | VRTS |
+ 6.83 | 12649 | 4397 |
| Hot Topic | HOTT |
+ 7.15 | 1474 | 120 |
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 |
| ExpressJet Holdings | XJT |
62.3 | 43.8 | 48.4 | 42.6 |
| Golden State Bancorp | GSB |
13.2 | 10.9 | 35.1 | 10.3 |
| Allied Capital | ALD |
65.4 | 54.8 | 84.2 | 27.2 |
| Financial Sector SPDRs | XLF |
27.8 | 24.5 | 37 | 13.6 |
| RJ Reyolds | RJR |
39.5 | 34.6 | 39.8 | 21.1 |
| Phillip Morris | MO |
36.6 | 33.6 | 42.5 | 19.4 |
Spike Down
| Name | Symbol | IV | Previous IV |
High IV |
Low IV |
| CDW Computer Centers | CDWC |
57.9 | 59.4 | 68.5 | 44.1 |
| Ecolab | ECL |
34.8 | 40.3 | 45.8 | 22.5 |
| Dell Computers | DELL |
48.5 | 55.6 | 66.1 | 38.3 |
| Lincare Holdings | LNCR |
35.9 | 41.1 | 50.8 | 32 |
| Brinker Int’l | EAT |
40.5 | 46.3 | 45 | 25.9 |
| Intel | INTC |
63.4 | 71.8 | 73.93 | 39.2 |
Please use stops on every trade!