Monday’s Options Alerts
Lack of volume has been the
only consistent ingredient this week as market participants kept the ETFs
coiled in a relatively tight range in percentage terms. Friday’s
downgrade of the semiconductor sector
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SMH |
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PowerRating)
and concerns over a falling dollar, had the averages finishing down on the week,
and essentially in the same place as Monday’s close.
At least we know where we stand. With the ETFs
finishing at the lows posted on Monday, we pretty much know the score already as
it’s been hashed out here in Tuesday and Wednesday evenings’ columns. Technically,
we remain at support, and with the extra days of light volume and no intensive
selling, I remain cautiously optimistic. Continue to honor stops and take your
trades when you see them, but the best advice is to remain vigilant for the day
when the Generals come back in and decide that it’s time to trade once again.
The
(
$VIX |
Quote |
Chart |
News |
PowerRating) and the
(
$VXN |
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PowerRating) are neutral as of the close of trading on
Friday. Both indices closed the week
slightly lower after a down week in the ETFs, but one which was marked by
contracting volatility. All said, not a bad reaction in the volatility indices,
but as I’ve said before, price and volume take first priority in my decision
process. With that in mind, since we did manage to slow it down to a trickle in
price action and in volume, we’ll continue to watch and prepare from the
sidelines.
Have a good weekend.
Points of Significance:
| Volatility Index |
Close | Net Change |
Signals/Direction | % Above/Below 10 Day Moving Average |
Significance |
| VIX | 32.12 | Up +1.31 |
No Signals |
At Moving Average |
Not at Extreme |
| VXN | 50.92 | Down -.13 | No Signals |
2.15% Below | Not at Extreme |
Abnormal Options Volume — This list
includes both percentage movers that are normally associated with an increase in
options activity, as well as stocks that have unusually high activity,
reflecting increased speculation of a potential price move.
| Name | Symbol | Net % Change |
Volume | Avg. Volume |
| Texas Utilities |
TXU |
+13% |
12164 | 2102 |
| WalMart | WMT |
+2% | 54210 | 8166 |
Stocks With Spikes in Implied
Volatility — Stocks with Increases and Decreases in implied
volatility compared to previous day. Candidates are then screened qualitatively.
These lists represent those issues that carry a blend of liquidity and/or
technical setups that might deserve further notice.
Spike Up
| Name | Symbol | IV | Previous IV |
High IV |
Low IV |
| Gilead | GILD |
51.6 | 47 | 88 | 42 |
| Northrop Grumman |
NOC | 31.7 | 28.6 | 55.1 | 26 |
| Ann Taylor |
ANN | 65 | 59 | 66.4 | 40.2 |
Spike Down
None Today
Please use stops on every trade!