Tuesday’s Options Alerts
The Dow
(
$INDU |
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Chart |
News |
PowerRating), S&P 500
(
$SPX |
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Chart |
News |
PowerRating), and Nasdaq
(
$COMPQ |
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Chart |
News |
PowerRating) all shot higher today in anticipation of another interest rate
cut tomorrow. After the close, Cisco Systems
(
CSCO |
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Chart |
News |
PowerRating) announced earnings that
beat estimates. This could have a positive effect for the markets tomorrow. Today the VIX
(
$VIX.X |
Quote |
Chart |
News |
PowerRating) opened near the
middle of its range and closed in the lower half of its range. Once again this intraday shift in sentiment suggests that fear is continuing
to subside as investors are waiting for the Fed tomorrow, in what could be our tenth rate
cut this year. Today marks the fifth consecutive day that the VIX has declined.
No CVR signals were triggered today. The VXN
(
$VXN.X |
Quote |
Chart |
News |
PowerRating) opened near the
high end of today’s range and closed near the lows of today. Again this intraday shift in sentiment
suggests that
fear is continuing to subside. The VXN did not trigger any CVR signals for
today either.
Points of Significance:
Administaff
(
ASF |
Quote |
Chart |
News |
PowerRating) rocketed over 26% higher
after they reported earnings in-line with analysts’ estimates. The
stock broke through its 20-, 50-, and 200-day moving averages today on triple
its average daily volume. Options volume was heavy too, as it traded over four times its average daily contract volume.
Cytyc
(
CYTC |
Quote |
Chart |
News |
PowerRating) broke down from a head & shoulders top today on triple its average daily volume today.
Cytyc did manage to close off its lows as it bounced off its .618 retracement
level at 23.12. Options activity was heavy as it
traded four times its average contract volume. Implied volatility is also at a
new high. Take Two Interactive
(
TTWO |
Quote |
Chart |
News |
PowerRating) dropped below its 200-day moving
average today on heavy volume. Illuminet Holdings
(
ILUM |
Quote |
Chart |
News |
PowerRating) is beginning to
pullback from lows. Illuminet’s implied volatility is at a new high.
| Volatility Index |
Close | Net Change |
Signals/Direction | % Above/Below 10 Day Moving Average |
Significance |
| VIX | 31.94 | DOWN 0.46 | NONE | 2.98 % Under | Not At Extreme |
| VXN | 58.96 | DOWN 2.23 | NONE | 2.83 % Under |
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 |
| Administaff | ASF | +26.05 | 646 | 133 |
| Pacificare Health Systems |
PHSY | +14.61 | 3124 | 643 |
| Agile Software |
AGIL | +12.10 | 1154 | 226 |
| Cytyc | CYTC | -11.88 | 4936 | 1150 |
| Telecom Brasil | TBH | +11.36 | 8880 | 3178 |
| Take-Two Interactive |
TTWO | -10.30 | 1800 | 762 |
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 |
| Cytyc | CYTC | 72 | 58.2 | 65 | 46.6 |
| Orion Power Holdings | ORN | 26.2 | 22.3 | 69.8 | 20.2 |
| Sierra Pacific Holdings | SRP | 39.1 | 33.7 | 49.8 | 34.1 |
| Illuminet Holdings | ILUM | 89.9 | 81.2 | 85.2 | 56 |
| Sara Lee | SLE | 27.3 | 24.7 | 29 | 22.4 |
| First Health Group | FHCC | 49.3 | 44.8 | 60 | 41.5 |
Spike Down
| Name | Symbol | IV | Previous IV |
High IV |
Low IV |
| AdvancedPCS | ADVP | 53.6 | 73.9 | 75.6 | 40.1 |
| Administaff | ASF | 62.2 | 77.1 | 77.2 | 49.2 |
| American Electric Power |
AEP | 26.5 | 31.1 | 30.1 | 22 |
| Manulife Financial |
MFC | 35.8 | 40.3 | 40 | 21.4 |
| CSX Corporation | CSX | 41.1 | 45.5 | 43.6 | 31.3 |
| BB&T Corporation |
BBT | 27.4 | 60.3 | 30.1 | 20.5 |
Please use stops on every trade!