Tuesday’s Options Alerts
Stocks
were hammered again as price action on the major indexes cruised
south from open to close. Leading the plunge were gold and silver, telecom,
semiconductors, natural gas, and Internet issues, while no sector managed to
close positive.
Scores of new lows were
achieved today, as the Semiconductor Index
(
$SOX.X |
Quote |
Chart |
News |
PowerRating), down 5.80%,
led the Nadaq to its lowest close in five years. Heavy selling at the end of the
session often translates into an emotional gap-down the following day, where
Kevin Haggerty‘s volatility bands often produce excellent reversal zones.
The Dow Jones Industrial
Average
(
$INDU.X |
Quote |
Chart |
News |
PowerRating) closed down 3.24% at 8043.63. The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) closed down 3.42% at 834.60. The Nasdaq
(
$COMPX |
Quote |
Chart |
News |
PowerRating)
closed down 3.36% at 1205.96.
U.S. Treasury Bonds were
up ‘7 at 107 ’30.
The top sectors: There were no sectors to close
positive.
Losing
sectors of the day were the Gold and Silver Index
(
$XAU.X |
Quote |
Chart |
News |
PowerRating),
down 6.42% at 59.17, and the Combined Telecom Index
(
$IXTC.X |
Quote |
Chart |
News |
PowerRating),
down 6.37% at 84.95.
Volatility again spiked higher today. The VIX
(
$VIX.X |
Quote |
Chart |
News |
PowerRating)
had a range of nearly 5 points today as it opened near its lows, and closed near
the top of its range. This is signaling a jump in fear and triggered a CVR III
today. The VXN
(
$VXN.X |
Quote |
Chart |
News |
PowerRating) also gapped up, opened near in the lower third of
its range and closed near the highs of the day. This shift in sentiment shows an
increase in fear.
Volatility Index |
Close |
Net Change |
Signals/Direction |
% Above/Below 10 Day Moving Average |
Significance |
( $VIX.X | Quote | Chart | News | PowerRating) |
49.31 | UP 3.92 | CVR III Buy | 17.09% Above | At Extreme |
| VXN |
67.15 |
UP 1.71 |
NONE | 5.88% 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 |
| Shaw Group |
( SGR | Quote | Chart | News | PowerRating) |
-26.19 | 2718 | 624 |
| Interpublic Group |
( IPG | Quote | Chart | News | PowerRating) |
-23.83 | 3157 | 387 |
| PolyMedica |
( PLMD | Quote | Chart | News | PowerRating) |
-18.49 | 2140 | 324 |
| AmeriCredit |
( ACF | Quote | Chart | News | PowerRating) |
-17.09 | 8666 | 3665 |
| Cognizant Technology Solutions |
( CTSH | Quote | Chart | News | PowerRating) |
-14.52 | 1098 | 280 |
| CACI International |
( CACI | Quote | Chart | News | PowerRating) |
-12.95 | 929 | 252 |
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 |
American Water Works |
( AWK | Quote | Chart | News | PowerRating) |
15.9 |
12.0 |
14.1 |
8.7 |
Forest Labs |
( FRX | Quote | Chart | News | PowerRating) |
50.0 |
40.2 |
49.9 |
29.0 |
NCO Group |
( NCOG | Quote | Chart | News | PowerRating) |
92.1 |
74.4 |
81.6 |
41.9 |
Bear Stearns |
( BSC | Quote | Chart | News | PowerRating) |
45.2 |
36.6 |
45.8 |
26.7 |
Radio One |
( ROIA | Quote | Chart | News | PowerRating) |
92.1 |
74.6 |
90.6 |
44.7 |
Interpublic Group |
( IPG | Quote | Chart | News | PowerRating) |
82.6 |
67.3 |
69.4 |
32.5 |
Spike Down
Name |
Symbol |
IV |
Previous IV |
High IV |
Low IV |
| PennzEnergy Group |
( PZL | Quote | Chart | News | PowerRating) |
14.7 | 19.3 | 43.2 | 14.8 |
Please use stops on every trade!