Thursday’s Options Alerts
Stocks lingered for
the majority of the session
after the much weaker-than-expected GDP numbers. However, a final-hour rally
pushed the Dow and S&P 500 in the green. At
the close, the Dow
(
$INDU |
Quote |
Chart |
News |
PowerRating) gained 56.56 points or 0.65%, the S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) gained 8.85 points or just under 1%. The Nasdaq on the other
hand dropped 16 points or 1.19 %, thanks to KLA-Tencor
(
KLAC |
Quote |
Chart |
News |
PowerRating) and the
semiconductors
(
$SOX.X |
Quote |
Chart |
News |
PowerRating).
Both the Dow and the S&P were able to
shrug off some negative economic data. First, second quarter GDP numbers showed
that the economy grew at a 1.1%, while economists had been expecting 2.4%. Also
the Chicago Purchasing Managers Index fell to a reading of 51.5% from June’s
reading of 58.2% vs. 56.4% expected by economists. Lastly, past GDP
estimates were also downwardly revised.
The VIX
(
$VIX.X |
Quote |
Chart |
News |
PowerRating) gapped
up, opened near
its highs, and closed near the bottom of its range. This shift
in intraday sentiment again shows a decrease in fear. Today we have another CVR
3 sell signal. Don’t overstay your welcome on the long side as complacency is
setting back in.
The VXN
(
$VXN.X |
Quote |
Chart |
News |
PowerRating) also gapped up, opened near its lows,
and closed slightly above its open. This shift
in intraday sentiment shows an increase in fear. The VXN triggered a CVR 2
sell signal today.
Points of Significance:
Veritas
(
VTS |
Quote |
Chart |
News |
PowerRating) shot up over 36% on more than four times its average
volume, on news that it terminated its merger agreement with
Petroleum Geo-Services. The shares gapped above a short-term downtrend line, but
it has resistance from 12.50 to 13.19. Implied volatility is still high, but is
coming down. A vertical or ratio spread would be a better way to play, rather than an
outright position.
Neurocrine Biosciences
(
NBIX |
Quote |
Chart |
News |
PowerRating) gained 6.9% on almost double its average
volume. One day after the company reported lower-than-expected second-quarter results and
lowered guidance, the shares busted out of a low-level cup and handle.
| Volatility Index |
Close | Net Change |
Signals/Direction | % Above/Below 10 Day Moving Average |
Significance |
| VIX | 35.21 | UP 0.06 | CVR 3 SELL |
15.48 % Below |
At Extreme |
| VXN | 57.86 | UP 1.40 | CVR 2 SELL |
9.10% Below | Near Extreme |
Abnormal Options Volume With Price Movement
—
Abnormal options volume (calls and puts) with stock price movement
| Name | Symbol | Net % Change |
Volume | Avg. Volume |
| Veritas | VTS |
+ 36.88 | 445 | 131 |
| NVIDIA | NVDA |
– 31.75 | 19757 | 79.2 |
| Hot Topic | HOTT |
– 30.46 | 533 | 259 |
| Sangsat Medical | SANG |
– 21.85 | 948 | 104 |
| Chico’s FAS | CHS |
– 10.79 | 1409 | 568 |
| Neurocrine Biosciences | NBIX |
+ 6.90 | 588 | 199 |
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 |
| Chico’s FAS | CHS |
70.7 | 48.3 | 74 | 39.1 |
| Urban Outfitters | URBN |
85.1 | 59.6 | 61.7 | 47.7 |
| Luxottica Group | LUX |
48.8 | 34.3 | 42.2 | 23.5 |
| NCO Group | NCOG |
69.2 | 55.7 | 81.6 | 41.9 |
| Sangstat Medical | SANG |
77.3 | 62.8 | 73.3 | 54.9 |
| Goodrich B. F. | GR |
60.5 | 50 | 51.1 | 33.1 |
Spike Down
| Name | Symbol | IV | Previous IV |
High IV |
Low IV |
| Jack in the Box | JBX |
33.5 | 42.3 | 42.5 | 23.7 |
| Profit Recovery Group | PRGX |
85.1 | 106.6 | 76.3 | 42.4 |
| TCF Financial | TCB |
26.7 | 33.2 | 35.4 | 19.1 |
| Laboratory Corp. | LH |
63.9 | 78.6 | 78.4 | 24.2 |
| Constellation Energy | CEG |
45 | 53.8 | 58.1 | 25.3 |
| Webster Financial | WBST |
27 | 32.1 | 29.1 | 19.9 |
Please use stops on every trade!