Thursday’s Options Alerts
Following
yesterday’s pause day, the major averages had a wild session
as they chopped around, headed higher,
sold off, then finally rallied into the close. At the close, the Dow
(
$INDU |
Quote |
Chart |
News |
PowerRating) picked up almost 85 points or 0.95%, the index closed just 20
points shy of its high. The S&P
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) gained 11.91 points or
1.27%, and the Nasdaq
(
$COMPX |
Quote |
Chart |
News |
PowerRating)
rallied 32.49 points or 2.36%.
Once again, volume was a bit on the light side, but it did pick up today.
Airlines
(
$XAL.X |
Quote |
Chart |
News |
PowerRating) up 9.42%, were especially strong today after being
beaten up last week. The index did break back above its short-term downward trendline and its 20-day moving average. Networking
(
$NWX.X |
Quote |
Chart |
News |
PowerRating) up 6.41%,
Internets
(
$DOT.X |
Quote |
Chart |
News |
PowerRating) up 4.84%, and semiconductors
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) up 4.65%
were also top performing sectors of the day. Even Intel
(
INTC |
Quote |
Chart |
News |
PowerRating) gained over
3% despite SG Cowen lowering their third quarter and full year estimates.
Retailers
(
$RLX.X |
Quote |
Chart |
News |
PowerRating) even gained 1.43% after Radio Shack warning that their
third quarter results would be below previous estimates. The only sectors that
bucked the trend today were gold
(
$XAU.X |
Quote |
Chart |
News |
PowerRating) down 1.84% and insurance
(
$IUX.X |
Quote |
Chart |
News |
PowerRating)
down 0.71%.
The VIX
(
$VIX.X |
Quote |
Chart |
News |
PowerRating) gapped down, opened near
the midpoint of its range, ran to near yesterday’s high, and close just beneath
its open. This was the tenth consecutive day that the VIX closed below its open
and once again, this shift
in intraday sentiment still shows a drop in fear. We have yet another
repeat CVR 3 sell and 6 sell signals today.
The VXN
(
$VXN.X |
Quote |
Chart |
News |
PowerRating) gapped
lower, opened near its midpoint, ran up, and closed near
the lows of the day. This shift
in intraday sentiment also shows a drop in fear. The VXN also triggered another
CVR 3 sell today. Continue to tighten stops as this market is still overbought
and prone to a correction.
Points of Significance:
| Volatility Index |
Close | Net Change |
Signals/Direction | % Above/Below 10 Day Moving Average |
Significance |
| VIX | 31.63 | DOWN 0.93 | CVR 3, 6 SELLS | 11.50 % Below |
At Extreme |
| VXN | 46.11 | DOWN 1.60 | CVR 3 SELLS | 12.67 % 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 |
| RadioShack | RSH |
– 16.37 | 4208 | 305 |
| UT Starcom | UTSI |
+ 11.36 | 1636 | 601 |
| Gymboree | GYMB |
+ 10.33 | 811 | 249 |
| Home Depot | HD |
+ 8.03 | 45361 | 11694 |
| OSI Systems | OSIS |
+ 7.90 | 711 | 125 |
| United Surgical Partners |
USPI |
+ 7.16 | 557 | 109 |
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 |
| Boise Cascade | BCC |
53 | 42.7 | 44.4 | 29.2 |
| Golden State Bancorp | GSB |
24.6 | 20 | 35.1 | 18.4 |
| Radio Shack | RSH |
56.2 | 46.5 | 56 | 33.2 |
| Oakley | OO |
59 | 49 | 57.9 | 43 |
| Guitar Center | GTRC |
60.4 | 51.4 | 57.1 | 49.2 |
| Petco Animal Supplies | PETC |
54.6 | 48 | 62.8 | 32.1 |
Spike Down
| Name | Symbol | IV | Previous IV |
High IV |
Low IV |
| MeriStar Hospitality | MHX |
34.5 | 46.1 | 41.9 | 19.5 |
| Eaton Vance | EV |
49 | 61.3 | 47.2 | 25.8 |
| Meadwestvaco | MWV |
46.9 | 58 | 40.7 | 26.5 |
| Saks Fifth Avenue | SKS |
58 | 69.2 | 41.4 | 35.7 |
| Home Depot | HD |
36.4 | 43.2 | 56.3 | 24.5 |
| United Surgical Partners | USPI |
43.1 | 50.8 | 70.5 | 35.5 |
Please use stops on every trade!