Tuesday’s Options Alerts
Telecoms took down the market as Worldcom’s
(
WCOM |
Quote |
Chart |
News |
PowerRating) lower revenue
projections and Ericsson’s
(
ERICY |
Quote |
Chart |
News |
PowerRating) earnings warning weighed heavily
on the tech sector. The Nasdaq dropped
over 2% while the Dow and S&P 500 lost slightly over 1%. The telecom index
(
$XTC.X |
Quote |
Chart |
News |
PowerRating) lost over 4.7% while networking stocks
(
$NWX.X |
Quote |
Chart |
News |
PowerRating)
lost over 3% and looks poised to retest its lows. Financial issues were also hit
hard today due to the crisis in the Argentine financial system. For more information on today’s action, please refer to
the market
recap.
The VIX
(
$VIX.X |
Quote |
Chart |
News |
PowerRating)
opened near the bottom third of its range and closed near the top third of its
range. This intraday shift in
sentiment
suggests an increase in fear. No CVR signals were triggered by the VIX today. The VXN
(
$VXN.X |
Quote |
Chart |
News |
PowerRating) opened near the midpoint of its range and closed slightly below the
open. This intraday shift in sentiment suggests a decrease in fear. Despite the
bad news in the tech sector, the VXN did not move much today which suggests complacency is still in the air.Â
Points of Significance:
CV Therapeutics
(
CVTX |
Quote |
Chart |
News |
PowerRating) dropped 6% on
lower than average volume. The company reported a smaller than expected loss of
86 cents a share, compared to estimates of $1.07 a share. There is very heavy
activity in the May 30, 32.50, and 35 calls.
Caremax Rx
(
CMX |
Quote |
Chart |
News |
PowerRating) gained almost 5% on
triple its average volume. The company broke out of an ascending triangle today There is heavy activity
relative to open interest in the May 20 puts.
Nuecor
(
NUE |
Quote |
Chart |
News |
PowerRating) dropped a little over
3% on heavy volume. The stock appears to be breaking down from a double top. It
also broke below a three month long upward trendline. There is heavy activity in
the May 60 and 65 puts.
| Volatility Index |
Close | Net Change |
Signals/Direction | % Above/Below 10 Day Moving Average |
Significance |
| VIX | 22.72 | DOWN UP 1.42 |
NONE | 2.55% Above |
Not at Extreme |
| VXN | 39.06 | DOWN 0.29 |
NONE | 4.57 % 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 |
| FuelCell Energy |
FCEL | + 8.84 |
1024 | 256 |
| CV Therapeutics |
CVTX | – 6.14 |
2979 | 1282 |
| Group 1 Automotive |
GPI | + 6.18 |
565 | 102 |
| Caremax RX |
CMX | + 4.96 |
1007 | 427 |
| Cytc | CYTC | – 4.85 |
1438 | 565 |
| Nucor Corp. |
NUE | – 3.09 |
3345 | 1043 |
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 |
| Tuesday Morning |
TUES | 58.2 | 45.1 | 51.1 | 44.3 |
| Autodesk | ADSK | 51.6 | 40.8 | 60.9 | 41.2 |
| American Int’l Group |
AIG | 32.9 | 26.6 | 33.1 | 23.4 |
| Ashland | ASH | 23.1 | 19.1 | 26.7 | 17.4 |
| Neurocrine Biosciences |
NBIX | 61.8 | 51.4 | 66.4 | 51 |
| AGCO Corp. |
AG | 50.2 | 43.3 | 45.4 | 39.8 |
Spike Down
| Name | Symbol | IV | Previous IV |
High IV |
Low IV |
| Syncor International |
SCOR | 38.2 | 52.8 | 68 | 42.4 |
| Lamar Advertising |
LAMR | 32.1 | 41.6 | 67.3 | 32.1 |
| Hospitality Properties |
HPT | 18.6 | 24 | 31.4 | 16.2 |
| Insight Communicaiton |
ICCI | 42.4 | 52.6 | 57.9 | 43.5 |
| Puget Sound Energy |
PSD | 22 | 26.4 | 28.7 | 22.3 |
| Comcast Class A |
CMCSA | 34.7 | 41.2 | 40.6 | 29.1 |
Please use stops on every trade!