Tuesday’s Options Alerts
Stock fell moderately today as Enron’s bankruptcy,
Argentina’s worsening financial crisis, and more violence in the Middle East put
more uncertainty into the markets. The VIX
(
$VIX.X |
Quote |
Chart |
News |
PowerRating) opened near the midpoint of its
range and closed near the low end of its range. This intra-day shift in sentiment
suggests that despite all of the uncertainty, investors are not showing fear. No CVR signals were triggered today.
The VXN
(
$VXN.X |
Quote |
Chart |
News |
PowerRating) opened and closed at almost the same price, towards
the upper half of its range. No CVR signals were triggered by the VXN today.
Both volatility indices did not tell us much today. With both indices in neutral
territory, there is no bias to either side.
Points of Significance:
Liberate Technologies
(
LBRT |
Quote |
Chart |
News |
PowerRating) jumped over 14% today on
three times its average trading volume on speculation that United Pan-Europe
Communications
(
UPCOY |
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Chart |
News |
PowerRating), will use its software for their set-top boxes. Options
on Liberate traded double their average contract volume. Dynegy
(
DYNT |
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Chart |
News |
PowerRating)
dropped over 10% on almost four times its average trading volume today, as they
were slapped with a lawsuit for pulling out of a merger with Enron
(
ENE |
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News |
PowerRating).
Dynegy did follow with its own counter suit. ESS Technology
(
ESST |
Quote |
Chart |
News |
PowerRating)
jumped 9% and broke out of a flag on double its average trading volume. Its options volume
was very heavy, as it traded over six times its average today. Energy East
(
EAS |
Quote |
Chart |
News |
PowerRating)
had a key reversal day on heavy volume. Its implied volatility is approaching a
new high.
| Volatility Index |
Close | Net Change |
Signals/Direction | % Above/Below 10 Day Moving Average |
Significance |
| VIX | 26 | DOWN 0.14 | NONE | 0.006 % Above | Not At Extreme |
| VXN | 49.74 | UP 1.29 | NONE | 0.01 % 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 |
| Liberate Technologies |
LBRT | + 14.53 | 611 | 256 |
| Calpine | CPN | – 14.19 |
26962 | 8012 |
| Medimmune | MEDI | – 11.95 |
18132 | 2424 |
| Aviron | AVIR | + 11.79 |
1988 | 445 |
| Dynegy | DYN | – 10.47 | 40770 | 15459 |
| ESS Technology |
ESST | + 9.09 |
723 | 113 |
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 | 103.6 | 76.7 | 77.9 | 63 |
| ECI Telecom | ECIL | 112.5 | 93.1 | 108.3 | 77.1 |
| Calpine | CPN | 83.2 | 72 | 78.9 | 53.3 |
| Energy East Corporation | EAS | 32.9 | 28.5 | 33.3 | 25.4 |
| Corvis Corporation | CORV | 137.8 | 119.6 | 121.8 | 99.8 |
| Pharmacyclics | PCYC | 150.1 | 131.2 | 130.7 | 71.2 |
Spike Down
| Name | Symbol | IV | Previous IV |
High IV |
Low IV |
| Reckson Associates Realty | RA | 26.5 | 32.9 | 31.9 | 21.5 |
| Avion | AVIR | 56.9 | 70.2 | 126.8 | 69 |
| Optical Communications |
OCPI | 89 | 109.3 | 120.5 | 94.4 |
| TV Azteca | TZA | 47.8 | 57.1 | 94.7 | 49.5 |
| Homestore.com | HOMS | 114.1 | 135.7 | 140.3 | 64.4 |
| TIVO Inc. | TIVO | 82.3 | 94 | 121.9 | 82.3 |
Please use stops on every trade!