Thursday’s Options Alerts…
Additional
anthrax scares and Greenspan’s cautious testimony shook the markets today. The VIX
opened near the bottom of today’s range and closed right on the high for the
day. Likewise, the VXN
exhibited the same behavior, as it too opened near the bottom of its range and
closed at the high of the range. This intraday shift in sentiment suggests that
fear is once again mounting in the markets. This shift in sentiment could mean
more selling is on the way.
| Volatility Index |
Close | Net Change |
Signals/Direction | % Above/Below 10 Day Moving Average |
Significance |
| VIX | 37.23 | UP 2.01 | NONE | 5.41 % Above | Not at Extreme |
| VXN | 67.11 | UP 3.10 |
NONE | 3.44 % 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 |
| Filenet | FILE | + 33.03 | 326 | 68 |
| Dana Corporation. |
DANA | – 22.39 |
1587 | 328 |
| Siebel Systems | SEBL | – 19.31 | 45722 | 19784 |
| Sylvan Learning Systems |
SLVN | – 16.29 |
252 | 60 |
| Silicon Storage Technology |
SSTI | – 14.25 | 1234 | 611 |
| CIENA Corporation |
CIEN | – 13.56 |
38525 | 16679 |
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 |
| Parker Drilling | PKD | 29.3 | 14.1 | 60.4 | 15.5 |
| TD Waterhouse |
TWE | 39.7 | 29.3 | 66.3 | 46.9 |
| Lyondell Chemical | LYO | 62.3 | 51.8 | 58.7 | 39.4 |
| Delphi Automotive |
DPH | 46.7 | 39.3 | 45 | 32.8 |
| Titan Corporation | TTN | 72.3 | 61.2 | 91.1 | 50.4 |
| Apria Healthcare |
AHG | 65.2 | 55.8 | 63.4 | 33.7 |
Spike Down
| Name | Symbol | IV | Previous IV |
High IV |
Low IV |
| Niagara Mohawk | NMK | 27.9 | 36.7 | 36.6 | 15.8 |
| National Service Ind. |
NSI | 34.4 | 42.7 | 37.2 | 25.9 |
| Ralston Purina | RAL | 15 | 18.5 | 49 | 14.7 |
| Telecorp PCS |
TLCP | 46.9 | 57 | 84.3 | 51.4 |
| Service Master | SVM | 22.7 | 27.1 | 42.4 | 21.5 |
| RPM Inc. | RPM | 39.8 | 46.8 | 51.8 | 32.4 |
Wrap Up
Major indices all headed lower today. Despite
positive earnings from several key companies, the uncertainty stemming from the
anthrax scares plus Greenspan’s testimony has put fear back into the markets. Lydondell
Chemical’s implied volatility is at a new high. The stock broke below its
50-day moving average today. Ralston
Purina’s implied volatility is near its low, the stock is basing above its
20-day moving average.
Please use stops on every trade!