Thursday’s Options Alerts
Stocks fell on this first day of spring as negative news on Intel
(
INTC |
Quote |
Chart |
News |
PowerRating) and
Bristol-Myers Squibb
(
BMY |
Quote |
Chart |
News |
PowerRating) led a broad-based decline.
Despite a higher semiconductor book-to-bill ratio, chip
stocks were among the biggest losers after some cautious comments about Intel.
Drug stocks also weighed heavily on the market as Bristol-Myers Squibb dropped 15%. For more information on today’s action, please refer to
the market
recap.
The VIX
(
$VIX.X |
Quote |
Chart |
News |
PowerRating)
opened near its high and closed near the midpoint of its range. This shift in
intraday sentiment again suggests that fear is dropping somewhat. Today’s action
trigged a CVR
II and VI sell signals. The VXN
(
$VXN.X |
Quote |
Chart |
News |
PowerRating) opened
near the midpoint of its range and closed in the lower third of its range. This shift in intraday sentiment also
suggests that fear is dropping. The VXN triggered a CVR II sell signal. Despite
today’s selloff, there just doesn’t seem to be any fear in this market. This of
course shows complacency, therefore we will continue to wave a red flag.
Points of Significance:
Software maker Stellent
(
STEL |
Quote |
Chart |
News |
PowerRating)
dropped over 24% on over seven times its average volume. The shares came under
pressure today after a downgrade from Thomas Wiesel that was based on revenue
and accounting worries. The shares gapped below support and are at an all-time
low. However, there is heavy activity in the April and May 15 calls.
After a delayed opening, drug maker
Bristol Myer Squibb
(
BMY |
Quote |
Chart |
News |
PowerRating) dropped 15% on seven times its average volume. The
shares were hammered after the company reported disappointing results for its
heart failure drug Vanlev. Today’s news sent the stock to a four-year low. On
the weekly chart, BMY is breaking down from a head and shoulders top after a
test of its neckline. Â
Scios
(
SCIO |
Quote |
Chart |
News |
PowerRating) jumped 6% on double
its average volume. The shares had a nice key reversal day and showed good
relative strength despite the weakness in the biotechs and the overall market.
There is heavy activity in the May 25 calls and August 30 calls.
| Volatility Index |
Close | Net Change |
Signals/Direction | % Above/Below 10 Day Moving Average |
Significance |
| VIX | 20.70 | UP 0.35 |
CVR II, VI SELL |
3.45% Below | Not at Extreme |
| VXN | 38.11 | DOWN 0.88 |
CVR II SELL |
7.52 % 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 |
| Stellent | STEL | – 24.31 |
3295 | 260 |
| Bristol Myers Squibb |
BMY | – 15.56 |
45155 | 9739 |
| SmartForce | SMTF | – 8.69 |
1687 | 222 |
| Airborne Freight |
ABF | – 7.31 |
3001 | 424 |
| Scios | SCIO | + 6.21 |
1921 | 286 |
| Crown Cork & Seal |
CCK | + 6.75 |
5776 | 747 |
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 |
| Stellent | STEL | 110.4 | 85.6 | 101.4 | 74 |
| Deluxe Corp. |
DLX | 28.7 | 23.8 | 28.8 | 23.6 |
| General Electric |
GE | 32.2 | 27.5 | 48 | 28.7 |
| Miller Herman |
MLHR | 40.2 | 34.8 | 45.5 | 30.4 |
| Dial Corp. |
DL | 30.1 | 26.4 | 41.7 | 31.5 |
| Citigroup | C | 25.6 | 23.4 | 42.1 | 27.5 |
Spike Down
| Name | Symbol | IV | Previous IV |
High IV |
Low IV |
| Petroleo Brasileiro |
PBR | 38.9 | 49.8 | 45.1 | 37.2 |
| Americredit | ACF | 64.8 | 78.4 | 104 | 74.4 |
| New Plan Excel Realty |
NXL | 18 | 21.6 | 36.8 | 19.5 |
| Gap Inc. |
GPS | 42.1 | 20.1 | 70 | 51.8 |
| Dycom Industries |
DY | 39.3 | 45.3 | 70.5 | 45.6 |
| Hanover Compressor |
HC | 63.2 | 71.6 | 108.8 | 52.2 |
Please use stops on every trade!