Monday’s Options Alerts…
markets had a rough start today as eBay (EBAY)
and Microsoft (MSFT)
both warned about next quarter’s earnings. However the Dow, S&P 500, and the
Nasdaq all came back during the final two hours of trading to close modestly
higher for the day. Today the VIX ($VIX.X)
opened in the upper half of its range and closed near its lows for the day. This
intra-day shift in sentiment suggests that fear is continuing to subside. The
exhibited the same behavior as the VIX ($VIX.X)
as it too opened in the upper half of the range and closed near the lows. Just
like the VIX, this intra-day shift in sentiment also suggest that fear is
subsiding. On another note, the RSI on the VXN ($VXN.X)
downticked today, giving us a CVR
II buy signal.
Points of Significance:
Stocks shrugged off earlier weakness to close
near their highs for the day. QLT Therapeutics (QLTI)
gapped up and broke its 200-day moving average on nine times its average volume.
Scientific Atlanta (SFA)
also gapped up and broke its 50-day moving average on more than double its
average volume. eBay (EBAY)
gapped down on almost triple its average volume and is barely under its 200-day
moving average. In addition, it stopped just shy of its 50% retracement level at
51.88. Implied volatilities for Providian Financial (PVN)
and Georgia Pacific (GP)
hit new highs today. Providian Financial announced a 71% drop in third quarter
earnings and warned of a shortfall in the fourth quarter. Georgia Pacific’s
third quarter earnings dropped by 37% and the company also warned about a
decline for the fourth quarter.
Above/Below 10 Day Moving Average
|VIX||35.84||DOWN 1.52||NONE||.28 % Above||Not at Extreme|
Abnormal Options Volume With Price
Movement – Abnormal options volume (calls and puts)
with stock price movement
|NBTY Inc.||NBTY||– 19.65||719||200|
Stocks With Biggest Spikes in Implied
Volatility – Stocks with biggest increases or
decreases in implied volatility compared to previous day.
Please use stops on every trade!