Wednesday’s Options Alerts
The major averages are consolidating
their recent gains on this turnaround Tuesday. No
major economic news hit the wires today, but retail sales will be out
tomorrow. Tech stocks were under pressure today as Nortel Network’s
(
NT |
Quote |
Chart |
News |
PowerRating)
CFO resigned amid concerns regarding the company’s 401(k) plan. Biotechs were the strongest performers today as they continue
to pull back from their recent lows. Gold and airline stocks were also
notable performers. For more information on today’s action, please refer to
the market
recap. The VIX
(
$VIX.X |
Quote |
Chart |
News |
PowerRating) opened near its highs and
closed near its lows. There was no significant shift in intraday sentiment
today. No CVR signals were triggered either.
The VXN
(
$VXN.X |
Quote |
Chart |
News |
PowerRating) exhibited similar action as the VIX. The VXN did not
show any significant shifts in intraday sentiment.
Points of Significance:
Overture Services
(
OVER |
Quote |
Chart |
News |
PowerRating) jumped over 27% on
six times its average trading volume. The company released fourth quarter
earnings of 35 cents per share, more than doubling estimates. The shares are
continuing to rebound after last week’s tumble. Overture closed just above its
.618 retracement level. There is heavy activity in the February 25 and 30 puts.
F5 Networks
(
FFIV |
Quote |
Chart |
News |
PowerRating) jumped 12.5% on double its average volume.
No news was announced. The shares are trading in a descending triangle. There is heavy activity in the
March 20 puts.
Lincare Holdings
(
LNCR |
Quote |
Chart |
News |
PowerRating) dropped 10% on
almost eight times its average volume. After announcing fourth quarter results
in-line with analysts estimates yesterday, the shares were under heavy pressure
today. The company was downgraded today amid concerns of its rising exposure to
Medicare’s Part B drugs. There is heavy activity in the March 25 and May 25
puts.
| Volatility Index |
Close | Net Change |
Signals/Direction | % Above/Below 10 Day Moving Average |
Significance |
| VIX | 23.47 | DOWN .07 |
NONE | 6.97 % Under |
Not at Extreme |
| VXN | 48.97 | UP 2.23 |
NONE | 1.98 % 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 |
| Overture Services |
OVER | + 27.17 | 5541 | 2439 |
| Computer Network Technology |
CMNT | – 13.74 |
810 | 227 |
| F5 Networks | FFIV | + 12.48 | 2179 | 867 |
| Lincare Holdings |
LNCR | – 9.96 |
9323 | 302 |
| Blockbuster | BBI | + 8.80 | 1418 | 192 |
| Hotel Reservations |
ROOM | + 8.02 |
1934 | 752 |
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 |
| AT&T Canada |
ATTC | 93.1 | 63 | 44 | 12.2 |
| Syncor International |
SCOR | 75.5 | 59.1 | 60.2 | 49 |
| NCO Group | NCOG | 61.6 | 50.8 | 74.2 | 49.3 |
| Canadian National Railway |
CNI | 28 | 24.3 | 42.8 | 24.6 |
| Equity Office Property |
EOP | 23.6 | 20.5 | 32.1 | 18.4 |
| Kaufman & Broad Home |
KBH | 44.2 | 38.5 | 56.7 | 38 |
Spike Down
| Name | Symbol | IV | Previous IV |
High IV |
Low IV |
| Walgreen Co. | WAG | 22.9 | 38.6 | 39.1 | 23.3 |
| ChevronTexaco | CVX | 18.4 | 24.4 | 28.3 | 20.1 |
| GP Financial |
GPT | 29.9 | 38.6 | 46.5 | 32.2 |
| Wisconsin Energy |
WEC | 20.7 | 26.1 | 23.5 | 20.2 |
| Astoria Financial |
ASFC | 22.6 | 27 | 40 | 23.3 |
| Int’l Flavors & Frag. |
IFF | 25.6 | 30.3 | 37.9 | 24.8 |
Please use stops on every trade!