Monday’s Options Alerts
The major averages put in a sharp
rally on this post July 4 trading day. Fireworks lit up the Street today as
the Dow
(
$INDU |
Quote |
Chart |
News |
PowerRating) gained almost 325 points, or 3.5%. The S&P
(
$SPX.X |
Quote |
Chart |
News |
PowerRating)
rose 35 points or 3.67%, while the Nasdaq jumped 68 points or almost 5%.
There
were lots of sectors in the green today while the lone losing sector was gold.
Semiconductor issues
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) were the biggest gainers today as they
jumped 9%. Stocks rallied strongly despite the weak employment data. The June
non farm payrolls rose 36k vs. consensus expectations of 94k, and the
unemployment rate rose to 5.9% from 5.8%, in line with expectations. Although
this was a shortened trading day (low volume), the rally was impressive. As
always, follow through will be key. For more information on today’s action, please refer to
the market
recap.
The VIX
(
$VIX.X |
Quote |
Chart |
News |
PowerRating) gapped down, opened
on its highs and closed in the lower third of its range. This shift
in intraday sentiment again shows a big drop in fear. No more CVR signals were
triggered today. The VXN
(
$VXN.X |
Quote |
Chart |
News |
PowerRating) also gapped down, opened near its highs
and closed near the lows of the day. This shift in intraday sentiment also
shows a big decrease in fear. No CVR signals were triggered by the VXN
either.
Points of Significance:
JDA Software
(
JDAS |
Quote |
Chart |
News |
PowerRating) plummeted 44% on
more than 12 times its average volume.
The company warned that its second quarter results would come in between 17 to
18 cents a share. Analysts were expecting 22 cents a share. JDA broke down from
a head & shoulders today.
VISX
(
EYE |
Quote |
Chart |
News |
PowerRating) gained almost 7%,
however volume was very lackluster. The shares stopped just shy of their
1.27 retracement from its October lows on Wednesday.
| Volatility Index |
Close | Net Change |
Signals/Direction | % Above/Below 10 Day Moving Average |
Significance |
| VIX | 30.21 | DOWN 3.10 |
NONE | 3.11% Below |
Not At Extreme |
| VXN | 56.28 | DOWN 3.78 |
NONE | 5.63 % 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 |
| JDA Software |
JDAS | – 11.90 |
2115 | 184 |
| Xilinx | XLNX | + 9.97 |
13038 | 4926 |
| Shaw Group |
SGR | + 8.52 |
977 | 370 |
| Qualcomm | QCOM | + 8.18 |
12170 | 5662 |
| VISX Inc. |
EYE | + 6.93 | 458 | 102 |
| Hewlett Packard |
HPQ | + 7.09 |
7697 | 1842 |
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 |
| St. Joe |
JOE | 22.5 | 18.4 | 35.5 | 19 |
| Ameren Corp. |
AEE | 25.1 | 21.1 | 23.2 | 17.1 |
| Tweeter Home Entertainment |
TWTR | 64.9 | 57 | 68.2 | 52.1 |
| AVX Corp. |
AVX | 50 | 44.2 | 49.6 | 33.7 |
| Ingram Micro |
IM | 45.2 | 38.5 | 44.2 | 36.2 |
| Dianon Systems |
DIAN | 100.3 | 90.3 | 68.7 | 42 |
Spike Down
| Name | Symbol | IV | Previous IV |
High IV |
Low IV |
| M & T Bank |
MTB | 20 | 24.6 | 23.2 | 15 |
| Progress Energy |
PGN | 18.1 | 22.2 | 27.1 | 11.8 |
| Columbia Gas Systems |
CG | 29.6 | 34 | 32.2 | 22.4 |
| Cell Genesys |
CEGE | 64.4 | 73.9 | 68.1 | 54.8 |
| Coach | COH | 52.6 | 60.3 | 53.6 | 40.6 |
| Websense | WBSN | 84.3 | 96.5 | 82.8 | 64.6 |
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Please use stops on every trade.