Wednesday’s Options Alerts
The major indexes
gapped up this morning, and after an early pullback, rallied higher
to consolidations which held for most of the day, before late-day selling
brought prices slightly lower into the close, retaining most of the gains made
for the day. There were no losing sectors, as Internet, semiconductors, and
computer hardware made the biggest gains.
A strong dollar coupled with a widely held
belief that the Fed will lower rates next week helped inspire buyers into
American stocks, though the long-term effects of this news is unclear. As
Gary Kaltbaum reminds us, bear market rallies are fierce and seductive.
The Dow Jones Industrial Average
(
$INDU.X |
Quote |
Chart |
News |
PowerRating)
closed up 2.86% at 8274.09. The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) closed up 2.99%
at 859.57 at 834.60. The Nasdaq
(
$COMPX.X |
Quote |
Chart |
News |
PowerRating) closed up 4.43% at
1259.45% at 1259.45.
U.S. Treasury Bonds were down 1’03 at
106 ’27.
There were no economic releases today.
Market breadth was negative, with NYSE declining
issues over advancing issues by a ratio of 3.19, and down volume over up volume
by a 7.53 ratio. Nasdaq declining issues over advancing issues came in at 2.46,
and down volume beat up volume by a 9.72 ratio. The
VIX was down 3.58 at 45.73. The
TRIN was down 1.65 at 0.63.
Below average volume had the Dow the S&P 500 rally
to test their 20-day MA’s before pulling back, while the Nasdaq closing fell
short of its 20-day MA. Semiconductor Index
(
$SOX.X |
Quote |
Chart |
News |
PowerRating), up 6.20% at
301.54, erased yesterday’s loss. The Broker/Dealer Index
(
$XBD.X |
Quote |
Chart |
News |
PowerRating),
up 3.99% at 354.06, closed near the top of its range, though failed to close
above yesterday’s highs.
The top sectors of the day were the CBOE Internet
Index
(
$IIX.X |
Quote |
Chart |
News |
PowerRating), up 7.11% at 62.76, and the GSTI Internet Index
(
$GSM.X |
Quote |
Chart |
News |
PowerRating),
up 6.27% at 150.46.
Losing
sectors: there were no losing sectors today
The VIX
(
$VIX.X |
Quote |
Chart |
News |
PowerRating)
had a range of nearly 3 points today as it opened near its high, and closed in
the middle of its range, triggering a CVR II
today. The VXN
(
$VXN.X |
Quote |
Chart |
News |
PowerRating) opened lower, traded to the bottom of its range
and closed near the mid-point for the day.
Volatility Index |
Close |
Net Change |
Signals/Direction |
% Above/Below 10 Day Moving Average |
Significance |
( $VIX.X | Quote | Chart | News | PowerRating) |
45.73 | DOWN 3.58 | CVR II Buy | 9.08% Above | At Extreme |
| VXN |
64.35 |
DOWN 3.17 | NONE | 1.70% 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 |
| Ballard Power |
( BLDP | Quote | Chart | News | PowerRating) |
+25.59 | 1564 | 645 |
| Checkfree Holdings |
( CKFR | Quote | Chart | News | PowerRating) |
+20.10 | 611 | 123 |
| Cree, Inc. |
( CREE | Quote | Chart | News | PowerRating) |
+14.10 | 1954 | 933 |
| Omnicom Group |
( OMC | Quote | Chart | News | PowerRating) |
+12.89 | 11610 | 3820 |
| MIM Corp. | ( MIMS | Quote | Chart | News | PowerRating) |
-12.09 | 739 | 249 |
| Fleming Companies |
( FLM | Quote | Chart | News | PowerRating) |
+12.02 | 1362 | 655 |
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 |
| Interpublic Group |
( IPG | Quote | Chart | News | PowerRating) |
108.0 | 82.6 | 69.4 | 32.5 |
| Biogen |
( BGEN | Quote | Chart | News | PowerRating) |
66.8 | 55.9 | 64.0 | 35.8 |
| Hyperion Solutions |
( HYSL | Quote | Chart | News | PowerRating) |
69.0 | 58.7 | 56.1 | 45.3 |
| TCF Financial |
( TCB | Quote | Chart | News | PowerRating) |
32.7 | 28.4 | 35.4 | 19.1 |
| Clayton Homes, Inc. |
( CMH | Quote | Chart | News | PowerRating) |
60.3 | 52.9 | 49.5 | 29.0 |
Spike Down
Name |
Symbol |
IV |
Previous IV |
High IV |
Low IV |
| Omnicom Group | ( OMC | Quote | Chart | News | PowerRating) |
62.3 | 79.1 | 91.9 | 24.5 |
| Edison International |
( EIX | Quote | Chart | News | PowerRating) |
86.1 | 108.0 | 88.4 | 28.1 |
| Public Service Enterprise Group |
( PEG | Quote | Chart | News | PowerRating) |
37.3 | 44.1 | 44.8 | 15.3 |
| Citigroup | ( C | Quote | Chart | News | PowerRating) |
59.8 | 70.6 | 65.0 | 23.6 |
| Intel Corp. | ( INTC | Quote | Chart | News | PowerRating) |
66.3 | 77.0 | 73.9 | 39.2 |
Please use stops on every trade!