Thursday’s Options Alerts…
Stocks ended mixed today as economic data showed that the
U.S. economy shrank less than Wall Street had anticipated. Third quarter GDP
fell 0.4 percent compared to a projected fall of one percent. Tech stocks rose
modestly as Intel
(
INTC |
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PowerRating) made bullish connotations for long-term growth
and profitability. Positive news from Sun Microsystems
(
SUNW |
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PowerRating) and Motorola
(
MOT |
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PowerRating) also helped rally the techs. Today’s action saw the VIX
(
$VIX.X |
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PowerRating)
open and close in the upper half of its range. The fact that the VIX closed near
its high for the day suggest that fear is once again mounting. Tomorrow’s
release of the NAPM number should give clues of whether this fear will be
justified. No CVR
signals were triggered today for the VIX. The VXN
(
$VXN.X |
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PowerRating)
exhibited different behavior as it opened near the top half of the range, but
closed in the bottom half. This intraday shift in sentiment that fear is once
again subsiding. The VXN triggered no CVR signals for the day.
Points of Significance:
Allied Waste Industries
(
AW |
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PowerRating) continued to get
wasted today as it gapped down and fell on six times its average daily volume
today. Options activity was heavy too as it traded 26 times its average contract
volume. Adobe Systems
(
ADBE |
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Chart |
News |
PowerRating) gapped down on over four times its average
daily volume today as they lowered their earnings forecast and announced that
they would cut five percent of their workforce. Adobe did manage to reverse
course and close near its highs for the day. Eastman Kodak
(
EK |
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Chart |
News |
PowerRating) continued its
slump today as it traded lower on six times its average daily volume after
Moody’s cut its debt rating. Kodak’s options activity was heavy as it traded
nearly ten times its average daily contract volume. Macrovision
(
MVSN |
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Chart |
News |
PowerRating)
formed an inside day today on almost three times its average daily volume. Its
implied volatility shot to a new high, which suggests that its options are
getting pricey.
| Volatility Index |
Close | Net Change |
Signals/Direction | % Above/Below 10 Day Moving Average |
Significance |
| VIX | 35.28 | UP .13 | NONE | 4.69 % Above | Not At Extreme |
| VXN | 62.35 | DOWN 1.06 | NONE | 1.47 % Under |
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 |
| Allied Waste Industries |
AW | – 20.38 | 6096 | 230 |
| Qwest Communications |
Q | – 19.06 |
10803 | 4139 |
| Aeroflex Incorporated |
ARXX | + 12.50 |
621 | 207 |
| Fluor | FLR | – 8.50 |
509 | 102 |
| Adobe Systems | ADBE | – 8.17 | 6909 | 3234 |
| Eastman Kodak |
PHSY | – 8.02 |
25557 | 2631 |
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 |
| Macrovision Corporation | MVSN | 99.6 | 59.3 | 97.6 | 57.2 |
| Qualcomm | QCOM | 79 | 51.6 | 80.5 | 54.7 |
Spike Down
| Name | Symbol | IV | Previous IV |
High IV |
Low IV |
| EchoStar Communications | DISH | 55.8 | 93.2 | 72.5 | 55.8 |
| McDonalds | MCD | 34 | 56.6 | 35.9 | 23.1 |
| eFunds Corporation | EFDS | 67.8 | 109.7 | 75 | 59.7 |
| Solectron | SLR | 83.8 | 130.8 | 80.2 | 57.5 |
| Jabil Circuit | JBL | 89.2 | 138.3 | 104.2 | 65.4 |
| Elan Corporation | ELN | 41.8 | 64.5 | 53.8 | 32.5 |
Please use stops on every trade!