Wednesday’s Options Alerts
All major indices ended in the red
today as the bleeding continued in tech stocks for the fifth consecutive day.
Despite the Dow’s
(
$INDU |
Quote |
Chart |
News |
PowerRating) valiant effort to stay in the green, the index finally closed
in the red as selling intensified in the final hour. The Dow had been able to
outperform the other two indices as selling in the tech led to buying in the
blue chips, but today this was not the case. Also a bullish book to bill ratio did not
excite chip stocks today. So please remain cautious. For more information on today’s action, please refer to
the market
recap.
The VIX
(
$VIX.X |
Quote |
Chart |
News |
PowerRating)
opened and closed in the top third of its range. This intraday shift in
sentiment
suggests that fear is increasing. Once again no CVR signals was triggered by the VIX today. The VXN
(
$VXN.X |
Quote |
Chart |
News |
PowerRating) also opened and closed near the highs of its range. This intraday shift in sentiment suggests
fear is increasing. Today’s action in the VXN trigger a CVR
I and V sell signals.Â
Points of Significance:
Lattice Semiconductor
(
LSCC |
Quote |
Chart |
News |
PowerRating) lost
over 25% of its value on over ten times its average volume. The company reported a
first quarter loss of 23 cents a share compare to earnings of $.10 a share a
year ago. Excluding charges, the results were in line with expectations. The
company also expected revenues for the second quarter to be flat. The stock
broke down from a descending triangle today and fell to a two year low. There is very heavy
activity in the September 10 puts.
Prepaid Legal Services
(
PPD |
Quote |
Chart |
News |
PowerRating)
jumped 155 on
triple its average volume. The company reported first quarter results that beat
expectations and increased 26% in the same period a year ago. The stock was
trading in a head & shoulders top, but today’s action violated the
pattern.Â
Mandalay Resort Group
(
MBG |
Quote |
Chart |
News |
PowerRating) gained
a little over
3% today and hit a new 52 week high on triple its average volume. The company
said that they expect to posts earnings of 70 cents far surpassing estimates of
50 cents. Mandalay will report results on May 23. There is heavy activity in the
September 30 puts.
| Volatility Index |
Close | Net Change |
Signals/Direction | % Above/Below 10 Day Moving Average |
Significance |
| VIX | 22..13 | UP 0.41 |
NONE | 4% Above |
Not at Extreme |
| VXN | 39.93 | UP 0.87 |
CVR I, V SELL |
3.14 % 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 |
| Lattice Semiconductor |
LSCC | – 25.88 |
1399 | 331 |
| CACI International |
CACI | – 20.86 |
1168 | 244 |
| Prepaid Legal |
PPD | + 15.35 |
4687 | 1939 |
| Tyco International |
TYC | – 4.84 |
93203 | 28728 |
| Direct Focus |
DFXI | – 3.79 |
5212 | 1119 |
| Mandalay Resort Group |
MBG | + 3.74 |
700 | 144 |
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 |
| CACI International |
CACI | 53.6 | 41.1 | 67.2 | 42.7 |
| Equity Residential |
EQR | 21.7 | 17.7 | 29.2 | 18.3 |
| MIM Corporation |
MIMS | 75.5 | 64.8 | 86.7 | 64.9 |
| Columbia Gas Systems |
CG | 25.4 | 22.1 | 25.8 | 22.4 |
| New Plan Excel Realty |
NXL | 19.6 | 17.1 | 31.7 | 17.5 |
| North Fork Bancorp |
NFB | 18.9 | 16.5 | 33.3 | 18.3 |
Spike Down
| Name | Symbol | IV | Previous IV |
High IV |
Low IV |
| Electronic Data System |
EDS | 35.2 | 43.4 | 43.7 | 31.1 |
| First Energy |
FE | 22.8 | 26.1 | 28.2 | 22.5 |
| Trimeris | TRMS | 52.3 | 59.5 | 82.2 | 49.8 |
| Timken | PATH | 43 | 48.8 | 76.3 | 39.1 |
| Ameripath | PATH | 43 | 48.8 | 76.3 | 39.1 |
| Kinder Morgan Energy |
KMP | 21.5 | 24.1 | 41.4 | 20.9 |
Please use stops on every trade!