Wednesday’s Options Alerts
The major market averages headed lower today after
the recent run up, as investors locked in profits. The VIX
(
$VIX.X |
Quote |
Chart |
News |
PowerRating) opened
and closed near its high for the day. This intraday shift in sentiment is
showing that fear is starting to creep back up. In addition to yesterday’s CVR III and
CVR VI sell signals, today we have added CVR
II and V sell signals. The VXN
(
$VXN.X |
Quote |
Chart |
News |
PowerRating) opened in the
bottom half of its range and closed near the highs for the day. The VXN’s intraday action also showed that
fear is returning. The VXN triggered both a CVR
I and II sell signals
today. Both volatility indices are in the process of relieving their overbought
condition. Due to the influx of selling into the close, we could see further
weakness tomorrow morning.
Points of Significance:
Healthsouth
(
HRC |
Quote |
Chart |
News |
PowerRating) jumped almost 12% today on
triple its average daily trading volume, as an upgrade and positive comments
helped propel the stock higher. Options activity was heavy, as it traded
over four times its average contract volume. Marvell Technology
(
MRVL |
Quote |
Chart |
News |
PowerRating) fell
over 11% today on over double its average
trading volume. The stock is closing in on its .382 retracement level at 29.58.
Harmonic Inc.
(
HLIT |
Quote |
Chart |
News |
PowerRating) broke above its 50- and 200-day moving averages today on
double its average volume. Options volume was heavy as it traded over five times its average
contract volume. Zion Bancorp
(
ZION |
Quote |
Chart |
News |
PowerRating) appears to be breaking down from a
head & shoulders top. Zion’s implied volatility is at a new high, which
suggests that option premiums are getting pricey.
| Volatility Index |
Close | Net Change |
Signals/Direction | % Above/Below 10 Day Moving Average |
Significance |
| VIX | 26.13 | + .49 | CVR II, V |
8.06 % Under | Not At Extreme |
| VXN | 51.41 | + .58 |
CVR I, II |
8.28 % 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 |
| Avanex | AVNX | – 12.87 | 836 | 384 |
| Healthsouth | HRC | + 11.82 |
10446 | 2165 |
| Marvell Technology |
MRVL | – 11.66 |
6914 | 1863 |
| Finisar Corporation |
FNSR | – 11.07 |
18048 | 1701 |
| Harmonic | HLIT | + 10.92 | 4825 | 861 |
| McData | MCDT | – 9.70 |
1074 | 367 |
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 |
| Zion Bancorp | ZION | 43 | 33.2 | 40.5 | 21 |
| Pharmacyclics | PCYC | 125.7 | 108.9 | 118.2 | 71.2 |
| ESS Technology |
ESST | 76 | 66.5 | 89 | 64.9 |
| Financial SPDR | XLF | 27 | 24.2 | 41 | 20.4 |
| Aether Systems | AETH | 98.7 | 90.5 | 109.7 | 92.3 |
| MatrixOne, Inc. | MONE | 108.4 | 99.5 | 112.1 | 92.9 |
Spike Down
| Name | Symbol | IV | Previous IV |
High IV |
Low IV |
| Regions Financial | RGBK | 24.4 | 29.3 | 32.7 | 23.9 |
| Citizens Utilities Corp. |
CZN | 44.1 | 52.3 | 56.3 | 36.6 |
| Greater Bay Bancorp |
GBBK | 34.3 | 40.5 | 56.5 | 40.1 |
| Travelocity.com | TVLY | 81.8 | 95.7 | 116.4 | 76.2 |
| Professional Detailing | PDII | 85 | 99.2 | 101 | 57 |
| Espeed | ESPD | 90.5 | 105.5 | 114.5 | 80.4 |
Please use stops on every trade!