Thursday’s Options Alerts
The DOW led the major averages higher as it posted triple digit gains today
thanks to Sears
(
S |
Quote |
Chart |
News |
PowerRating), Eastman Kodak
(
EK |
Quote |
Chart |
News |
PowerRating), Dupont
(
DD |
Quote |
Chart |
News |
PowerRating), and Caterpillar
(
CAT |
Quote |
Chart |
News |
PowerRating). Tech stocks
rebounded somewhat after several brokerages came to Cisco’s defense over worries
that the company will have a negative pre-announcement. 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 sentiment suggest that fear is decreasing. No CVR signals was
triggered by the VIX today.. The VXN
(
$VXN.X |
Quote |
Chart |
News |
PowerRating) gapped up and opened near
the highs of the day and closed near its lows. This shift in intraday sentiment also shows fear
decreasing. The VXN triggered a CVR I and II buy signals today.Â
Points of Significance:
Research In Motion
(
RIMM |
Quote |
Chart |
News |
PowerRating) dropped
over 13% on 6 times its average volume today. The company lowered its revenue
and earnings targets for their first quarter and full year 2003. The company
also said that it will post of first quarter loss of 18 to 22 cents per share
compared with previous estimates of a loss of 10 to 12 cents per share. The
shares are continuing to break down after a double top. It has also broken an
uptrend line on its weekly chart.Â
Brocade Communications
(
BRCD |
Quote |
Chart |
News |
PowerRating)
dropped 6% on heavy volume. The stock came under pressure today as SG Cowen
lowered estimates on a number of storage stocks. Brocade is trading in a
head & shoulders top and it closed right above its neckline.Â
Biotechs rebounded today, helped by
Genentech
(
DNA |
Quote |
Chart |
News |
PowerRating), however they are still in a severe downtrend. Enzon
(
ENZN |
Quote |
Chart |
News |
PowerRating)
gained over % on double its average volume. The shares rebounded today after a
two-week losing streak. The decline in Enzon shares were halted at the 1.27
retracement of the prior counter trend rally. There is some speculation in the
May 60 calls.
| Volatility Index |
Close | Net Change |
Signals/Direction | % Above/Below 10 Day Moving Average |
Significance |
| VIX | 20.22 | DOWN 0.83 |
NONE | 1.75% Below |
Not at Extreme |
| VXN | 42.07 | DOWN 0.39 |
CVR I, II BUYÂ |
6.24 % Above |
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 |
| Research In Motion |
RIMM | – 13.19 |
15727 | 2703 |
| Panera Bread |
PNRA | + 9.68 |
1192 | 318 |
| Siebel Systems |
SEBL | – 7.69 |
73623 | 18219 |
| Brocade Communications |
BRCD | – 6.25 |
22447 | 10546 |
| Enzon | ENZN | + 6.48 |
2729 | 754 |
| Tyson Foods |
TSN | + 6.98 |
2723 | 923 |
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 |
| American Capital Strategies |
ACAS | 27.3 | 21.9 | 42 | 24.8 |
| Cemex S.A. |
CX | 26.7 | 22 | 32.2 | 21.9 |
| Basic Industires SPDRs |
XLB | 19.7 | 16.7 | 42 | 17.3 |
| Computer Sciences |
CSC | 49 | 41.8 | 48.6 | 38.3 |
| ITT Industries |
ITT | 24.1 | 21.3 | 31.5 | 19.4 |
| Dial Corp. |
DL | 31.8 | 28.2 | 41.7 | 27.2 |
Spike Down
| Name | Symbol | IV | Previous IV |
High IV |
Low IV |
| PennzEnergy | PZL | 16.1 | 40.2 | 54.2 | 29.6 |
| IDEC Pharmaceuticals |
IDPH | 48.7 | 56.8 | 70.9 | 47.1 |
| Wrigleys | WWY | 14.6 | 16.9 | 26 | 14.9 |
| Int’l Flavors |
IFF | 21.8 | 25.2 | 34.5 | 24.8 |
| Genuine Parts |
GPC | 18.1 | 20.9 | 29.1 | 20.3 |
| Smurffit Stone |
SSCC | 26.1 | 29.7 | 56.9 | 29.3 |
Please use stops on every trade!