Monday’s Options Alerts
The markets end mixed today as a positive pre-announcement from 3M help
prop the DOW
(
$INDU |
Quote |
Chart |
News |
PowerRating) up. However, tech stocks were hit once again as warnings from
McData and Legato depressed the techs. Jobs data came in somewhat mixed as
nonfarm payrolls saw a gain of 58,000, besting the estimates of a gain of 40,000.
The March unemployment rate rose 0.2% to 5.5%, lower than estimates of 5.6%. On
the other hand, a big downward revision in the February payrolls threw a monkey
wrench into things. For more information on today’s action, please refer to
the market
recap.
The VIX
(
$VIX.X |
Quote |
Chart |
News |
PowerRating)
opened and closed near the middle of its range today.
This shift in
intraday sentiment again suggests fear is decreasing. The VIX triggered a CVR II buy
signal. The VXN
(
$VXN.X |
Quote |
Chart |
News |
PowerRating) opened and closed near the lower third of its range. Despite
more bad news hitting the tech sector, there wasn’t much of a shift in intraday sentiment.
No CVR signals were triggered by the VXN today.
Points of Significance:
Biotech issues were among the weakest
sectors today as the biotech index dropped 3%. Genentech
(
DNA |
Quote |
Chart |
News |
PowerRating) dropped more
than 8% on five times its average volume. The stock came under pressure today as
it warned that it will once again delay its application to sell its psoriasis
drug Xanelim. Shares of Genentech are sitting at a new 5 month low. Despite the
bad news, there is heavy activity in the April 55 and May 50 calls.
Affymetrix
(
AFFX |
Quote |
Chart |
News |
PowerRating)
dropped almost 6% on average volume. The stock is forming a head & shoulders
top on the weekly chart. A break below 21.19 could spell trouble.Â
3M
(
MMM |
Quote |
Chart |
News |
PowerRating) jumped almost 7% on over
double its average volume. The company revised its first quarter outlook to
$1.20 per share. 3M said that their results will be boosted by cost and
personnel reduction. There is heavy activity in the May 130 calls. Â
| Volatility Index |
Close | Net Change |
Signals/Direction | % Above/Below 10 Day Moving Average |
Significance |
| VIX | 21.11 | DOWN 0.66 |
CVR II BUY |
3.68% Above |
Not at Extreme |
| VXN | 40.82 | UP 0.60 |
CVR I BUY |
5.86 % 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 |
| Avocent | AVCT | – 10.85 |
594 | 258 |
| Genentech | DNA | – 8.75 |
7924 | 3262 |
| 3M | MMM | + 6.84 |
9982 | 4236 |
| Affymetrix | AFFX | – 5.41 |
3803 | 1456 |
| Human Genome Sciences |
HGSI | – 5.75 |
3803 | 1456 |
| ICOS | ICOS | – 4.45 |
7015 | 974 |
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 |
| PennzEnergy | PZL | 39.5 | 29.4 | 54.2 | 31.8 |
| Watson Pharmaceuticals |
WPI | 50.9 | 39.3 | 57.3 | 31.3 |
| Royal Caribbean Cruise |
RCL | 49.9 | 42.7 | 103.2 | 42.2 |
| Hutchinson Technology |
HTCH | 63.5 | 54.5 | 56.6 | 45.7 |
| Genentech | DNA | 48 | 41.8 | 58.2 | 35.7 |
| Sara Lee |
SLE | 22.5 | 19.6 | 28.1 | 19.4 |
Spike Down
| Name | Symbol | IV | Previous IV |
High IV |
Low IV |
| Radio One |
ROIAK | 39.9 | 48.5 | 58.3 | 52.9 |
| RPM Inc. |
RPM | 34.2 | 41.2 | 46.5 | 33 |
| Istar Financial |
SFI | 26.5 | 31.9 | 27.8 | 19.1 |
| New Plan Excel Realty |
NXL | 16.3 | 19.6 | 32.9 | 17.7 |
| Caminus Corporation |
CAMZ | 50.1 | 59.8 | 76.8 | 56.9 |
| Union Planters |
UPC | 16.8 | 19.8 | 29.9 | 17 |
Please use stops on every trade!