Thursday’s Options Alerts
No follow through happened today after yesterday’s big rally. The major
averages ended modestly lower with the Dow
(
$INDU |
Quote |
Chart |
News |
PowerRating) being the biggest loser as
disappointing earnings from Boeing
(
BA |
Quote |
Chart |
News |
PowerRating) and United Technologies
(
UTX |
Quote |
Chart |
News |
PowerRating) weighed heavily on
the index. Mildly positive comments from Greenspan failed to help the markets.
Greenspan commented today that the foundation for an economic recovery has
already been laid and that inflation is currently contained. Many
economists don’t expect a rate hike until summertime. For more information on today’s action, please refer to
the market
recap.
The VIX
(
$VIX.X |
Quote |
Chart |
News |
PowerRating)
opened near its highs and closed near its lows. This intraday shift in intraday sentiment
suggests a slight decrease in fear. No CVR signals were triggered by the VIX today. The VXN
(
$VXN.X |
Quote |
Chart |
News |
PowerRating) opened near its highs and closed near the midpoint of its range. This too shows a
decrease in fear. The VXN did not trigger any CVR signals either. Volatility
remained in a tight range today despite mixed earnings announcements and
Greenspan’s testimony. In after hours action, IBM
(
IBM |
Quote |
Chart |
News |
PowerRating) announced first
quarter results that met lowered Street expectations, so expect more volatility
tomorrow.
Points of Significance:
Metris Companies
(
MXT |
Quote |
Chart |
News |
PowerRating) plunged over
30% on six times its average volume.
The credit card issuer announced earnings in-line with estimates, but warned
that earnings for fiscal 2002 will come in around $1.75 to $2.25 a share, well
below estimates of $2.75. There is heavy activity in the May and July 15 puts.
Williams Sonoma
(
WSM |
Quote |
Chart |
News |
PowerRating) jumped 12% on
over six times its average volume. The shares broke out today after the company
quadrupled its first-quarter forecast and raised full year estimates by 10%. The company also announced a 2-for-1 split. There is heavy activity in
the May 45 calls.Â
Office Depot
(
ODP |
Quote |
Chart |
News |
PowerRating) dropped 7% on double
its average volume. The company reported an 82% jump in first-quarter earnings and
announced that its full year results should be in the high end of estimates. The
shares are beginning to pull back after a 40% increase since February. There is
heavy activity in the May 20 calls.
| Volatility Index |
Close | Net Change |
Signals/Direction | % Above/Below 10 Day Moving Average |
Significance |
| VIX | 20.18 | DOWN 0.12 |
NONE | 4.86% Below |
Not at Extreme |
| VXN | 39.29 | DOWN 0.14 |
NONE | 4.84 % 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 |
| Metris Companies |
MXT | – 30.62 |
18119 | 3863 |
| William Sonoma |
WSM | + 11.59 |
1420 | 319 |
| Cell Therapeutics |
CTIC | – 11.02 |
1182 | 274 |
| O2Micro International |
OIIM | + 8.32 |
1185 | 108 |
| Office Depot |
ODP | – 7.77 |
1929 | 721 |
| Boeing | BA | – 6.83 |
8090 | 2815 |
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 |
| Pfizer | PFE | 29.5 | 23.2 | 32.4 | 20.2 |
| Leggett & Platt |
LEG | 23.4 | 18.8 | 33.4 | 18.2 |
| Scholastic Corp. |
SCHL | 42.4 | 34.2 | 37 | 30.1 |
| Financial Sector SPDRs |
XLF | 14.9 | 12.2 | 28.4 | 14 |
| Pier One Imports |
PIR | 47.1 | 40.6 | 64.4 | 41.9 |
| Comcast | CMCSA | 41.3 | 36 | 40.6 | 29.1 |
Spike Down
| Name | Symbol | IV | Previous IV |
High IV |
Low IV |
| Union Planters |
UPC | 15 | 20 | 29 | 17 |
| Viad | VVI | 20.9 | 26.4 | 39.2 | 23.2 |
| Aquila | ILA | 24.5 | 29.9 | 30.9 | 28 |
| Pioneer Natural Resources |
PXD | 31.3 | 37.6 | 58 | 32.9 |
| Greater Bay Bancorp |
GBBK | 31.9 | 38.2 | 45.7 | 31.3 |
| Applied Materials |
AMAT | 45.4 | 52.6 | 76 | 46.1 |
Please use stops on every trade!