Tuesday’s Options Alerts
Following last
week’s reversal, the indices started the day on a negative note, but a final-hour rally pushed the averages well of their lows.
The action was light today as traders are waiting to see where Greenspan will
take the direction of interest rates. Also the August 14 deadline for companies to
certify their statements is up on the horizon.
At the close, the Nasdaq
(
$COMPX |
Quote |
Chart |
News |
PowerRating)
was the only major index to close in the green as it gained 0.59 points or
0.04%. The Dow
(
$INDU |
Quote |
Chart |
News |
PowerRating), which was done over 160 points intraday,
finished the day with a loss of 56 points or 0.64%. The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating)
dropped 4.86 points or 0.53%.
The airline index
(
$XAL.X |
Quote |
Chart |
News |
PowerRating) took the hardest
hit as it lost over 7.5% after U.S. Airways filed for chapter 11 bankruptcy this
weekend. The retail index
(
$RLX.X |
Quote |
Chart |
News |
PowerRating) fell 2.34% ahead of tomorrow’s retail
sales report. Gaining sectors for the day included oils
(
$OSX.X |
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Chart |
News |
PowerRating),
Internets
(
$ECM.X |
Quote |
Chart |
News |
PowerRating), and Biotechs
(
$BTK.X |
Quote |
Chart |
News |
PowerRating). Biotechs are setting up
for a bowtie buy.
The VIX
(
$VIX.X |
Quote |
Chart |
News |
PowerRating) gapped up,
opened near its highs, and closed near the lows of the day. This shift in
intraday sentiment again shows a decrease in fear ahead of the Fed meeting.
No CVRs were
triggered today. The VXN
(
$VXN.X |
Quote |
Chart |
News |
PowerRating) opened near its highs and closed near the
lows of the day. This shift
in intraday sentiment shows a drop in fear. The VXN didn’t trigger any
CVRs either.
Points of Significance:
| Volatility Index |
Close | Net Change |
Signals/Direction | % Above/Below 10 Day Moving Average |
Significance |
| VIX | 40.46 | UP 1.10 | NONE | 2.48 % Below |
Not at Extreme |
| VXN | 56.29 | DOWN 56.29 | NONE |
8.45 % Below | 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 |
| Unibanco Brasil | UBB |
– 16.48 | 556 | 229 |
| Limted | LTD |
– 12.82 | 1208 | 522 |
| Dollar Tree Stores | DLTR |
– 6.68 | 1321 | 111 |
| Fairchid Semiconductors | FCS |
– 6.41 | 1883 | 352 |
| Federated Department Stores | FD |
– 4.32 | 1979 | 366 |
| Tiffany & Co. | TIF |
– 7.05 | 1060 | 169 |
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 |
| PennzEnergy | PZL |
28.7 | 16.6 | 43.2 | 14.8 |
| NCO Group | NCOG |
69.7 | 54.8 | 81.6 | 41.9 |
| Jack in the Box | JBX |
43.3 | 34.8 | 12.5 | 23.7 |
| Allied Capital Corp. | ALD |
69.6 | 56.6 | 84.2 | 27.2 |
| Kroger | KR |
41.3 | 33.8 | 39.6 | 23.1 |
| Uniao de Bancos Brasil | UBB |
105.9 | 88.2 | 94.2 | 41.3 |
Spike Down
| Name | Symbol | IV | Previous IV |
High IV |
Low IV |
| Pepsi Americas | PAS |
25.9 | 30 | 35.4 | 19.1 |
| American Water Works | AWK |
13.1 | 16.8 | 15.9 | 8.7 |
| Marriott Int’l | MAR |
45.4 | 52.2 | 53 | 31.8 |
| ValueVision | VVTV |
47.6 | 54.7 | 60.1 | 46.5 |
| Petco | PETC |
57.1 | 65.3 | 62.8 | 32.1 |
| AT&T Canada | ATTC |
23 | 25.9 | 55.8 | 22.2 |
Please use stops on every trade!