Tuesday’s Options Alerts
Stocks started the week off on a sour note as worries about pre-announcement spook
investors. Tech stocks were among the biggest losers, but they were ahead
early in the day after Forrester Research said that it expected IT spending to
pick up faster than previously expected.Â
The only positive sectors for the day were gold stocks and oil service stocks. For more information on today’s action, please refer to
the market
recap.
The VIX
(
$VIX.X |
Quote |
Chart |
News |
PowerRating)
opened near the lower third of its range and in the top third of its range. This shift in
intraday sentiment again suggests that fear is creeping back up. Today’s action triggered
a CVR
II sell and another CVR
VI sell signal. After almost 5 days of new lows, the VIX came off its 18
month low and formed an inside bar. The VXN
(
$VXN.X |
Quote |
Chart |
News |
PowerRating) opened near its lows
and closed near its highs. This shift in intraday sentiment also
suggests that fear is increasing. No CVR signals were triggered by the VXN
today. The VXN had a key reversal day as it took out Friday’s low and then the
high, this is a strong signal that the sentiment has changed and that fear is
coming back into the market.Â
Points of Significance:
Credit Card Issuer Metris Companies
(
MXT |
Quote |
Chart |
News |
PowerRating) dropped
23% on over five times its average volume. The stock came under pressure today
after Wachovia Securities cut its 2002 and 2003 earnings estimate based on
concerns over higher charge- offs. The stocks has retraced over 50% of its move
from late January. There is heavy activity in the April 20 and 22.50 puts.Â
Intermune
(
ITMN |
Quote |
Chart |
News |
PowerRating) dropped 14%
today on over triple its average volume. The shares came under pressure today on
concerns over decling sales of its drug, Actimmune. The stock is breaking down
from a descending triangle pattern.
After announcing a 2 for 1 split last
week, Alliance Gaming
(
ALLY |
Quote |
Chart |
News |
PowerRating) dropped over 6% on about average volume. The
stock is trading in a head and shoulders top and today’s action did have it
crack below its neckline. Â
| Volatility Index |
Close | Net Change |
Signals/Direction | % Above/Below 10 Day Moving Average |
Significance |
| VIX | 20.55 | UP 0.93 |
CVR II, VI SELL |
1.20% Below | Not at Extreme |
| VXN | 39.20 | UP 1.64 |
NONE | 1.70 % 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 |
| Metris Companies |
MXT | – 22.95 |
17302 | 3129 |
| Applied Films |
AFCO | – 20.41 |
1702 | 385 |
| InterMune | ITMN | – 14.09 |
982 | 290 |
| Continental Airlines |
CAL | – 9.74 |
2524 | 837 |
| Alliance Gaming |
ALLY | – 6.64 |
1253 | 586 |
| BCE Inc. |
BCE | – 5.98 |
2498 | 407 |
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 |
| Metris Companies |
MXT | 88.7 | 65.6 | 111.5 | 66.4 |
| GP Financial |
GPT | 28 | 24.1 | 46.5 | 24.6 |
| Seitel | SEI | 90 | 78.5 | 66.3 | 47.4 |
| Hershey Foods |
HSY | 19.2 | 16.8 | 28.5 | 16.9 |
| Conoco Inc. |
COC | 22.7 | 20 | 37.1 | 21.8 |
| Bowater | BOW | 30.4 | 26.8 | 33.9 | 26.6 |
Spike Down
| Name | Symbol | IV | Previous IV |
High IV |
Low IV |
| MeriStar Hospitality |
MHX | 22.2 | 25.4 | 60.5 | 24.8 |
| Consumer Staple SPDR |
XLP | 13.2 | 15.1 | 18.8 | 12.6 |
| Financial Sector SPDR |
XLF | 16 | 18.3 | 28.4 | 17.6 |
| Davita Inc. |
DVA | 26 | 29.1 | 61.3 | 29.3 |
| MBIA | MBI | 25.8 | 28.7 | 49.6 | 28.2 |
| Immunogen | IMGN | 70.1 | 77.8 | 97.1 | 73.7 |
Please use stops on every trade!