Thursday’s Options Alerts…
Strong retail sales, better than expected earnings
from Hewlett Packard
(
HWP |
Quote |
Chart |
News |
PowerRating), and more positive news from the war in
Afghanistan helped the market rally today. Today the VIX
(
$VIX.X |
Quote |
Chart |
News |
PowerRating) open and
closed in the bottom third of its range. The VIX did head a little higher before
working its way back to close near yesterday’s level. Intraday shift in sentiment
did show that fear is continuing to drop as more positive economic and corporate
news rolled in. Following yesterday’s CVR
III sell signal, tonight we have add a CVR
I sell signal. The VXN
(
$VXN.X |
Quote |
Chart |
News |
PowerRating) exhibited the same action as the VIX today.
This intraday shift in sentiment
also showed that
fear is subsiding. The action in the VXN triggered CVR
I and II sell signals for today. With more CVR sell signals and the fact
that the market is in overbought territory, we could see a pullback soon.
Points of Significance:
Amazon.com
(
AMZN |
Quote |
Chart |
News |
PowerRating) soared over 30% on four
times its average daily trading volume today on news of a stronger-than-expected
retail sales report. Amazon’s options volume was heavy today, trading over
double its average. CV Therapeutics
(
CVTX |
Quote |
Chart |
News |
PowerRating) shot up almost
26% and broke a four-month long downtrend line on double its average volume on news that its drug, Ranolazine, achieved its goal of allowing
cardiac patients to exercise longer and with less pain. Options volume was over
five times its
average. Digital Lightwave
(
DIGL |
Quote |
Chart |
News |
PowerRating) gapped above its 50-day moving average
today on over double average volume. However it did stall out at the
$10 resistance level. Energy East Corporation
(
EAS |
Quote |
Chart |
News |
PowerRating) is trading in a sideways
head & shoulders top. Its implied volatility is near a new high.
| Volatility Index |
Close | Net Change |
Signals/Direction | % Above/Below 10 Day Moving Average |
Significance |
| VIX | 28.60 | + 0.02 | CVR I SELL |
6.50 % Under | Not At Extreme |
| VXN | 56.38 | + 0.44 | CVR I, II SELL |
3.52 % 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 |
| Amazon.com | AMZN | + 30.17 | 15685 | 6179 |
| CV Therapeutics |
CVTX | + 25.94 |
14529 | 2326 |
| Terayon Communications |
TERN | + 25.14 |
2564 | 1128 |
| Digital Lightwave |
DIGL | + 17.98 |
1294 | 502 |
| Pacificare Health Systems |
PHSY | – 17.46 | 2729 | 1032 |
| Network Appliance |
NTAP | – 15.94 |
16412 | 5911 |
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 |
| Intersil Holdings | ISIL | 100.4 | 78.7 | 111.2 | 73.3 |
| Charter One Financial | CF | 32.7 | 28.7 | 36.4 | 22.2 |
| Energy East Corporation | EAS | 31.9 | 28.1 | 33.3 | 25.4 |
| Exxon Mobil | XOM | 28.5 | 25.3 | 36.2 | 20.4 |
| Archer Daniels Midland | ADM | 34.1 | 30.7 | 43.5 | 29 |
| Nabors Industries | NBR | 27 | 51.7 | 67.9 | 44.8 |
Spike Down
| Name | Symbol | IV | Previous IV |
High IV |
Low IV |
| CV Therapeutics | CVTX | 97.3 | 140.1 | 143.7 | 61.5 |
| Cooper Cameron |
CAM | 39.8 | 46.8 | 59.1 | 31.2 |
| Lumenis LTD | LUME | 77.3 | 94.7 | 87.9 | 78.5 |
| Financial SPDRs |
XLF | 24 | 28.7 | 41 | 20.4 |
| Robert Half International | RHI | 35.7 | 42.3 | 63.6 | 35.3 |
| Pharmacyclics | PCYC | 109.5 | 129.4 | 110.8 | 71.2 |
Please use stops on every trade!