Thursday’s Options Alerts…

Santa gave us an after-Christmas rally today as
investors were betting
on better than expected holiday sales. Stocks were strong
throughout the day, but the major averages did give back about half of their
gains by the close. Retailers and E-tailers were especially strong, as investors
believe that they will post holiday sales numbers that will surpass Wall Street’s
expectations. The VIX
(
$VIX.X |
Quote |
Chart |
News |
PowerRating)
opened at its highs and closed in the bottom
third of its range. This intra-day shift in sentiment
suggests that fear is declining. No CVR signals were triggered today. The VIX is still
getting more and more oversold which
means that the market is still getting overbought. The VIX has reached levels
not see since August. Take caution as we could be heading for a top. The VXN
(
$VXN.X |
Quote |
Chart |
News |
PowerRating)

exhibited similar action as the VIX. This intra-day shift in sentiment also
suggests that that fear is
declining. The VXN did not trigger any CVR signals today.

Points of Significance:

Impath
(
IMPH |
Quote |
Chart |
News |
PowerRating)
jumped 12% on double its
average volume today. No specific news was announced. Its options traded
over triple its average volume. There is somewhat heavy volume in the April 45
and 50 calls. Sirius Satellite Radio
(
SIRI |
Quote |
Chart |
News |
PowerRating)
was seriously higher early in
the day as investors were optimistic about the company’s radio programming
services. Its options traded almost four times its average volume. There is
heavy volume in the January 12.50 calls. Cree
(
CREE |
Quote |
Chart |
News |
PowerRating)
jumped
five percent and continued its ascent on normal volume. Options on Cree traded
over four times its average volume. Telefonos de Mexico
(
TMX |
Quote |
Chart |
News |
PowerRating)
continues to
trade in a base. Its implied volatility has gone to a new low. Look for long
volatility strategies.

Volatility
Index
Close Net
Change
Signals/Direction %
Above/Below 10 Day Moving Average
Significance
VIX 22.93 DOWN 0.28 NONE 6.45 % Below Not At Extreme
VXN 49.06 DOWN
0.38
NONE 2.87
% 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
Impath IMPH + 12.01 615 163
Sirius Satellite Radio SIRI + 8.05 4155 1057
Cree Inc. CREE + 5.77 4832 1122
Silicon Laboratories SLAB + 5.42 599 261
Waters WAT + 4.46 469 197
PetsMart PETM + 4.08 935 236

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
Numerical Technologies NMTC 124.2 77.9 107.6 75.1
Expedia EXPE 73.6 57.4 100.2 49.7
Dial Corp. DL 37.5 32.6 41.7 28.9
Newport News
Shipbuilding
NNS 29.6 26.5 30.7 18.4
Host Marriot HMT 49.7 44.7 78.6 30.5
Financial Sector SPDRs XLF 25.1 22.6 41 20.5

Spike Down

Name Symbol IV Previous
IV
High
IV
Low
IV
Shire Pharmaceuticals SHPGY 48.1 72.3 55.8 41.5
Ultra
Diamond Shamrock
UDS 19.7 28.2 35.8 27.5
Telefonos de
Mexico
TMX 12.4 17.1 40.3 21.8
Gilat
Satellite Networks
GILTF 108.7 142.9 152.4 84.6
Cali Realty CLI 19.2 25 28.2 18.8
Industrial
Sector SPDRs
XLI 25.2 32.1 30.8 24.3

Please use stops on every trade!