Thursday’s Option Alerts
Retail sales disappointed Wall Street. February retail sales numbers came in well below expectations at + 0.30%
vs. the expected 1%. There was
heavy selling across the board especially in the semiconductors. Chip stocks
were among the weakest sectors after analysts had cautious comments about the
group’s valuations and expectations for a recovery. For more information on today’s action, please refer to
the market
recap.
The VIX
(
$VIX.X |
Quote |
Chart |
News |
PowerRating) again gapped up,
opened near
its highs and closed slightly below the open. There was no significant shift in
intraday sentiment. No CVR signals were triggered today. The VIX is starting to
work its way off its summer lows. The VXN
(
$VXN.X |
Quote |
Chart |
News |
PowerRating) opened slightly below
the midpoint of its range and closed slightly above it. There was no significant
shift in intraday sentiment. No CVR signals were triggered by the VXN either. We
are starting to see fear creep back into the markets today. After the recent
barrage of positive economic data, today’s retail sales report jumbled the
picture.
Points of Significance:
Semiconductor stocks took it on the
chin today and Microsemi was no exception. Microsemi dropped over 16% on double
its average volume. UBS Warburg cut its price target from $40 to $25 on
valuation concerns. The shares did find support at its 20-day moving average.
Intermune
(
ITMN |
Quote |
Chart |
News |
PowerRating) gained almost
10% today on average volume. Biotechs were among the only sector in the green
today. The shares are in a steep downtrend and could be setting up for another
short. There is heavy activity in the October 35 puts.
Hanover Compressor
(
HC |
Quote |
Chart |
News |
PowerRating) dropped 6%
today on slightly below-average volume. The shares have recently come under
pressure as it will restate earnings for the year 2000. There is heavy activity
in the April 20 calls.
| Volatility Index |
Close | Net Change |
Signals/Direction | % Above/Below 10 Day Moving Average |
Significance |
| VIX | 21.97 | UP 0.66 |
NONE | 0% Below | Not at Extreme |
| VXN | 43.26 | UP 0.25 |
NONE | 1.12 % 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 |
| Comverse Technology |
CMVT | – 17.09 |
20636 | 8233 |
| Microsemi | MSCC | – 16.78 |
946 | 418 |
| Intermune | ITMN | + 9.69 |
716 | 231 |
| Anadigics | ANAD | – 5.70 |
904 | 232 |
| Protein Design Labs |
PDLI | + 6.58 |
7008 | 2509 |
| Hanover Compressor |
HC | – 6.12 |
5623 | 2445 |
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 |
| McDonalds | MCD | 27.8 | 22.5 | 38.8 | 22.8 |
| Wendy’s Int’l |
WEN | 28.1 | 22.8 | 35.5 | 23.5 |
| Automatic Data Processing |
ADP | 28.1 | 23 | 42.3 | 23.4 |
| Equity Office Properties |
EOP | 23.9 | 19.8 | 32.1 | 18.4 |
| AXA | AXA | 41.3 | 34.6 | 63.1 | 37.5 |
| Multimedia Games |
MGAM | 64.2 | 55.3 | 65.3 | 58.3 |
Spike Down
| Name | Symbol | IV | Previous IV |
High IV |
Low IV |
| Comverse Technology |
CMVT | 78 | 109.5 | 102.2 | 70 |
| Allied Capital Corpl |
ALD | 28.2 | 35.6 | 32.5 | 21.5 |
| Imperial Chemical ADR |
ICI | 97.2 | 121.9 | 100.1 | 33.9 |
| Legget & Platt |
LEG | 20.2 | 24.1 | 42.7 | 23.7 |
| AT&T Canada |
ATTC | 33 | 38.6 | 70.2 | 12.2 |
| Royal Caribbean Cruise |
RCL | 41.7 | 47.6 | 103.2 | 48.9 |
Please use stops on every trade!