Wednesday’s Options Alerts
Stocks rallied sharply higher after yesterday’s
modest fall. Technology stocks led the charge as many semiconductor and
networking issues ran sharply higher. Chip stocks were helped by some positive
comments from UBS Warburg which said that the industry was bound to recover. The VIX
(
$VIX.X |
Quote |
Chart |
News |
PowerRating) opened near the
top third of its
range and closed near the bottom third of its range. This intraday shift in sentiment
is telling us that fear is once again dropping as investors are continuing to
get more optimistic about the economy. No CVR signals were triggered today.
The VXN
(
$VXN.X |
Quote |
Chart |
News |
PowerRating) opened at the high of its range and closed near the lows
of the day. This intraday shift in sentiment is also telling us that fear is
declining. The decline in fear is more apparent in tech stocks. No CVR signals were triggered by the VXN
either.
Points of Significance:
CNET Networks
(
CNET |
Quote |
Chart |
News |
PowerRating) rocketed over 44% today on
news that it signed a distribution deal with Real Networks
(
RNWK |
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Chart |
News |
PowerRating) that will
give its users a “richer” experience. Options on CNET traded over
four times their average contract volume. Inhale Therapeutics
(
INHL |
Quote |
Chart |
News |
PowerRating) jumped
13% as they have agreed to team up with Chiron
(
CHIR |
Quote |
Chart |
News |
PowerRating) to develop inhaled
antibiotics to treat patients with cystic fibrosis. Inhale’s options traded over
18 times their average contract volume. However, there is very heavy activity in
the January 17.50 puts. InterDigital
Communications
(
IDCC |
Quote |
Chart |
News |
PowerRating) gapped up and broke its 200-day moving average on
heavy volume. InterDigital’s options traded over three times its average
contract volume. Progress Energy’s
(
PGN |
Quote |
Chart |
News |
PowerRating) implied volatility is at a new low.
The stock appears to be retesting the neckline of a head-and-shoulders top.
| Volatility Index |
Close | Net Change |
Signals/Direction | % Above/Below 10 Day Moving Average |
Significance |
| VIX | 25.33 | DOWN 0.67 | NONE | 1.86 % Under | Not At Extreme |
| VXN | 48.04 | DOWN 1.70 | NONE | 3.86 % 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 |
| CNET Networks |
CNET | + 44.36 | 1220 | 287 |
| Inrange Technologies |
INGR | + 37.90 |
743 | 119 |
| Inhale Therapeutic Systems |
INHL | + 13.20 |
9285 | 505 |
| CheckFree Holdings |
CKFR | + 13.02 |
343 | 125 |
| UT Starcom | UTSI | + 12.45 | 1804 | 850 |
| InterDigital Communications |
IDCC | + 12.19 |
1170 | 395 |
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 |
| Southern Company | SO | 21.7 | 18.3 | 26.7 | 19.7 |
| CSX Corp. | CSX | 35.6 | 31.9 | 43.6 | 31.1 |
| Jefferson Pilot | JP | 27.5 | 24.9 | 28 | 22.3 |
| HotJobs.com | HOTJ | 110 | 100.3 | 104.5 | 65.1 |
| Energy Sector SPDR | XLE | 32,0 | 29.2 | 32.7 | 17.2 |
| Willis | WSH | 150.1 | 131.2 | 130.7 | 71.2 |
Spike Down
| Name | Symbol | IV | Previous IV |
High IV |
Low IV |
| Reckson Associates Realty | RA | 26.5 | 32.9 | 31.9 | 21.5 |
| Avion | AVIR | 56.9 | 70.2 | 126.8 | 69 |
| Optical Communications |
OCPI | 89.0 | 109.3 | 120.5 | 94.4 |
| TV Azteca | TZA | 47.8 | 57.1 | 94.7 | 49.5 |
| Homestore.com | HOMS | 114.1 | 135.7 | 140.3 | 64.4 |
| TIVO Inc. | TIVO | 82.3 | 94 | 121.9 | 82.3 |
Please use stops on every trade!