Thursday’s Options Alerts

  • January 15, 2003
  • Chris Tyler

The ETFs all finished in the
red in Wednesday’s session, off about 1% respectively. With
prices lower, volatility levels increased, but are still within their range lows
as evidenced by the daily chart. Wall Street wasn’t able to put a positive spin
on Intel’s earnings, and for the first time in several trading sessions bad news
was actually greeted with some selling.

Technically, we still have solid evidence of an
uptrend, and price action is still constructive, but as mentioned in the Nightly
Daytraders Report, it didn’t hurt to take some profits. Volatility remains a
good way to execute your trades in this environment.

As mentioned, the
(
$VIX |
Quote |
Chart |
News |
PowerRating) and the
(
$VXN |
Quote |
Chart |
News |
PowerRating) finished
down on the session, but within their respective trading ranges, and with
today’s action, no signals were triggered. Have a good evening.

Points of Significance:

Volatility
Index		 Close Net
Change		 Signals/Direction %
Above/Below 10 Day Moving Average		 Significance
VIX 27.86 Up
+1.31		         
None		 1.19%
Above 		Not
At
Extreme
VXN 43.45 Up +1.45       
 None  		 0.0% 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 and / or
technical situations,
reflecting increased speculation of a potential price move.

Name Symbol Net
% Change		 Volume Avg.
Volume
Tenet
Healthcare 
THC		       
+5%		 21195 7840
Checkpoint Software
CHKP		        -2% 6830 2297
UTStarcom
UTSI		       
+2%		 3247 707

 

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
Genentech
DNA		 46.5 39.7 81.4 35.7

Spike Down

Name Symbol IV Previous
IV		 High
IV		 Low
IV
Zoran
ZRAN		 67 87 99 59.5
Genzyme GENZ 50 58.3 93 43.6

 

Please use stops on every trade!