Tuesday’s Options Alerts
All major indices ended in the red today as earnings jitters hit the market. Lower than expected earnings from Citigroup
(
C |
Quote |
Chart |
News |
PowerRating) and General Electric’s
(
GE |
Quote |
Chart |
News |
PowerRating) continuing downside action dragged down the
Dow. Strongest sectors included semiconductors and oil and oil services stocks.
The Dow
(
$INDU |
Quote |
Chart |
News |
PowerRating)has taken out some short term support levels while the
S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) is getting close to its .786 retracement level at
1095.69. For more information on today’s action, please refer to
the market
recap.
The VIX
(
$VIX.X |
Quote |
Chart |
News |
PowerRating)
opened and closed near the top half of its range today. There was no significant
shift in intraday sentiment today. Today’s action in
the VIX triggered a CVR
VI buy signal. The VXN
(
$VXN.X |
Quote |
Chart |
News |
PowerRating) displayed similar action as it too opened and closed
in the upper half of its range. Again there was no significant shift in intraday
sentiment today. The VXN also triggered a CVR
VI buy.Â
Points of Significance:
Communications equipment maker
(
PLCM |
Quote |
Chart |
News |
PowerRating)
gained over 7% on light volume.
The company announced that ESPN will be using Polycom’s video
communications systems to conduct live interviews during the NFL draft. The
shares rallied and stalled right at the downward trendline of its descending
triangle. Polycom is also facing lots of resistance from various fib
retracements..Â
Weatherford
(
WFT |
Quote |
Chart |
News |
PowerRating) gained 4% on average volume.
Oil stocks were boosted after crude oil rallied back above the $25 mark. A.G.
Edwards also increased the integrated oil sector to an “overweight”
position. However there is heavy volume in the May 45 puts.
Semiconductor maker Novellus Systems
(
NVLS |
Quote |
Chart |
News |
PowerRating)
gained 3% on heavy volume. The shares were boosted today as it expects its
second quarter results to be above analysts estimates. The company is now
expected to earn six cents a shares compare to a loss of a penny a share.
| Volatility Index |
Close | Net Change |
Signals/Direction | % Above/Below 10 Day Moving Average |
Significance |
| VIX | 22.38 | UP 0.29 |
CVR VI BUY |
4.58% Above |
Not at Extreme |
| VXN | 41.97 | DOWN 0.94 |
CVR VI BUY | 0.01 % 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 |
| J.D. Edwards |
JDEC | – 11.57 |
1831 | 531 |
| Polycom | PLCM | + 7.46 |
3969 | 1151 |
| Pharmaceuticals Res. |
PRX | + 4.98 |
1549 | 532 |
| Weatherford | WFT | + 4.44 |
24919 | 611 |
| Novellus Systems |
NVLS | + 3.46 |
8741 | 3896 |
| Perkin Elmer |
PKI | + 2.80 |
2269 | 449 |
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 |
| ASM International |
ASMI | 57.5 | 45.6 | 79.2 | 54.5 |
| CSG Systems Int’l |
CSGS | 97.4 | 78.2 | 71.1 | 50.8 |
| XCEL Energy |
XEL | 21 | 16.9 | 31.8 | 18.6 |
| Pinnacle West Capital |
PNW | 20.3 | 16.8 | 27.8 | 14.2 |
| Wachovia | WB | 25.1 | 21.4 | 37.7 | 19.7 |
| Intergraph | INGR | 49.6 | 68.3 | 73.2 | 45.5 |
Spike Down
| Name | Symbol | IV | Previous IV |
High IV |
Low IV |
| PennzEnergy Corp. |
PZL | 20.3 | 41.4 | 54.2 | 29.6 |
| Potomac Electric Power |
POM | 16.4 | 20.7 | 25.4 | 15.3 |
| National City Corp. |
NCC | 16.3 | 20.2 | 33.5 | 19.1 |
| Keyspan | KSE | 19.7 | 24.2 | 31.7 | 19.1 |
| Roslyn Bancorp |
RSLN | 22.4 | 26.6 | 38.8 | 24.2 |
| Lilly Eli |
LLY | 28.8 | 33.2 | 31.9 | 21.8 |
Please use stops on every trade!