Wednesday’s Options Alerts
It was a
pretty boring session as the indices traded back and forth on this eve of 9/11. The
major averages had erased a morning rally after the nation’s security alert was
raised to orange, but then another rally took the indices to close higher for
the third straight day. Once again volume was light as there was still some
tension in the air as tomorrow is the one-year anniversary of the attacks.
At the close, the Dow
(
$INDU |
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Chart |
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PowerRating) gained 83.23 points or 0.97%, the index is approaching resistance
at the convergence of its 50-day moving average and a 50% retracement of the
prior downleg. The S&P
(
$SPX.X |
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Chart |
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PowerRating) gained 6.62 points or 0.73% and finally,
the Nasdaq
(
$COMPX |
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PowerRating) gained 15.49 points or 1.18%. Resistance for the Naz
comes in just up ahead at the convergence of its 20- and 50-day moving average
and a 50% retracement of the previous downleg.
Semiconductors
(
$SOX.X |
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PowerRating) up
3.59%, oil service
(
$XOI.X |
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PowerRating) up 2.67% were the best-performing sectors of
the day. Gold
(
$XAU.X |
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PowerRating) down 5.33%, utilities
(
$UTY.X |
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PowerRating) down 2.36,
and airlines
(
$XAL.X |
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PowerRating) down 2 were the worst-performing sectors today.
Volatility continued its sell off today. The VIX
(
$VIX.X |
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Chart |
News |
PowerRating) opened near
its high and closed near the lows of the day. This shift in intraday sentiment
shows another drop in fear. Once again no CVR signals were triggered today. The VXN
(
$VXN.X |
Quote |
Chart |
News |
PowerRating) opened
on its highs and closed near its lows. This shift
in intraday sentiment also shows a drop in fear.
Points of Significance:
| Volatility Index |
Close | Net Change |
Signals/Direction | % Above/Below 10 Day Moving Average |
Significance |
| VIX | 36.96 | DOWN 1.44 | NONE | 3.37% Below | Not At Extreme |
| VXN | 53.07 | DOWN 2.40 | NONE | 4.46 % 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 |
| Genentech | DNA | – 9.71 | 10196 | 2453 |
| Jack In The Box | JBX | – 9.37 | 669 | 102 |
| GP Financial | GPT | – 5.80 | 1483 | 215 |
| American Capital Strategies |
ACAS | -2.75 | 1053 | 280 |
| Novellus Systems | NVLS | + 5.15 | 18709 | 4367 |
| Raytheon | RTN | – 4.72 | 2994 | 778 |
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 |
| J. Jill Group | JILL | 70.5 | 58.3 | 68.8 | 38.8 |
| FPL Group | FPL | 34.1 | 28.8 | 41.2 | 17.6 |
| Acxiom | ACXM | 53 | 46.3 | 84.8 | 48.3 |
| Cinergy | CIN | 36 | 31.5 | 59.1 | 16.5 |
| Doral Financial | DORL | 41.4 | 37.3 | 50.7 | 24.3 |
| Future Brands | FBN | 51.7 | 47.0 | 55.8 | 36.1 |
Spike Down
| Name | Symbol | IV | Previous IV |
High IV |
Low IV |
| Concord EFS | CEFT | 71.8 | 80.3 | 78.8 | 31.5 |
| Wal-Mart | WMT | 34.5 | 37.9 | 48 | 21.3 |
| Mandalay Resort | MBG | 36.9 | 40.5 | 64.9 | 32.3 |
| Arthur J. Gallagher | AJG | 35.3 | 38.7 | 40.3 | 22.9 |
| Lexmark | LXK | 52.2 | 57.1 | 62.5 | 33.8 |
| Bed Bath & Beyond | BBBY | 47 | 51.4 | 59.8 | 32.5 |
Please use stops on every trade!