Thursday’s Options Alerts
Yesterday’s Fed
move towards an easing bias and today’s deadline for corporate statement
certification caused the Dow
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$INDU |
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$SPX.X |
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linger for much of the session, however the Nasdaq
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$COMPX |
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despite a revenue warning from Applied Materials
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AMAT |
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PowerRating). Soon
after, a late afternoon rally spring-boarded the major averages to their best
gains since July 19.
At the close, the Dow surged 260 points or 3.07%, the
S&P ran up 35.42 points or 4% taking out its double top and forming a huge
reversal bar. The Nasdaq was the strongest today as it ran up 65 points or
5.12%. The Nasdaq closed just under its 38.2% retracement level from its June 18 high.
Best-performing sectors were: Semiconductor
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$SOX.X |
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computer hardware
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$GHA.X |
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$DOT.X |
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and retailers
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$RLX.X |
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$XAU.X |
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down 1.84%, airline
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$XAL.X |
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$FPP.X |
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down 0.37%. Although today’s numbers were impressive, volume was not impressive
and we are already coming back into overbought territory.
The VIX
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$VIX.X |
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up, opened near
its highs, and closed near the lows of the day. This shift
in intraday sentiment shows a big drop in fear. The VIX is stretched over 10%
and shows some complacency, therefore we have a CVR 3 sell signal today. The VXN
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$VXN.X |
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opened near its highs and closed in the lower third of its range. This shift
in intraday sentiment also shows a drop in fear. Adding to yesterday’s CVR 1
& 5 sell signals, we have two more sell signals for the day.
Points of Significance:
| Volatility Index |
Close | Net Change |
Signals/Direction | % Above/Below 10 Day Moving Average |
Significance |
| VIX | 33.36 | DOWN 3.44 | CVR 3 SELL | 13.57 % Below |
At Extreme |
| VXN | 53.28 | DOWN 4.40 | CVR 3, 6 SELL | 12.88 % Below | 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 |
| Vivendi Universal | V |
– 23.93 | 2563 | 489 |
| AON Corp. | AOC |
+ 22.08 | 1978 | 390 |
| Myraid Genetics | MYGN |
+ 11.70 | 211 | 100 |
| Abercrombie & Fitch | ANF |
+ 10.61 | 12131 | 2131 |
| Wal-Mart | WMT |
+ 8.02 | 15924 | 7184 |
| Micron Technology | MU |
+ 7.28 | 29110 | 7346 |
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 |
| TCF Financial | TCB |
32.2 | 26.6 | 35.4 | 19.1 |
| Nicor | GAS |
62.4 | 52.1 | 97.3 | 17.7 |
| Allied Capital | ALD |
78 | 65.6 | 84.2 | 27.2 |
| Vivendi | V |
112.1 | 95.4 | 117.1 | 39.8 |
| Ingram Micro | IM |
49.5 | 42.3 | 44.2 | 36.2 |
| Compass Bancshares | CBSS |
30.3 | 26.2 | 29.5 | 17.9 |
Spike Down
| Name | Symbol | IV | Previous IV |
High IV |
Low IV |
| Interpublic Group | IPG |
81.3 | 110.1 | 97.9 | 32.5 |
| Emmis Communications | EMMS |
55 | 59.7 | 84.1 | 42.5 |
| Wal-Mart | WMT |
35.6 | 43 | 48 | 21.3 |
| Roslyn Bancorp | RSLN |
32.1 | 38.2 | 35 | 21.4 |
| M&T Bank | MTB |
24 | 28.5 | 31.3 | 15 |
| Intermune | ITMN |
128.4 | 150.1 | 118.7 | 64.2 |
Please use stops on every trade!