Wednesday’s Options Alerts
The major
averages
made it to four in a row as stocks shot higher today after better-than-expected earnings reports and outlooks from a number of blue chip giants, (Citigroup
(
C |
Quote |
Chart |
News |
PowerRating), Bank of America
(
BAC |
Quote |
Chart |
News |
PowerRating), Fannie
Mae
(
FNM |
Quote |
Chart |
News |
PowerRating), General Motors
(
GM |
Quote |
Chart |
News |
PowerRating), and Johnson & Johnson
(
JNJ |
Quote |
Chart |
News |
PowerRating)).
Stocks
were on fire from the start, volume was heavy, and breadth was a very positive 3
to 1, but the significantly higher open made it easier to just watch than
trade. At the
close, the Dow
(
$INDU |
Quote |
Chart |
News |
PowerRating) shot up 378.28 points or 4.80%, its next level of
resistance is at its 50-day average at 8282. The S&P
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) jumped
39.82 points or 4.73%, the S&P has already taken out its 50 day average and
is already close to its 61.8% retracement of the down leg from the August 22
high. Finally, the Nasdaq
(
$COMPX |
Quote |
Chart |
News |
PowerRating) jumped 61.89 points or 5.07%. Once
again, virtually all sectors were in the green.
The biggest winners were
airlines
(
$XAL.X |
Quote |
Chart |
News |
PowerRating) up 12.16%, semiconductors
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) up 9.44%,
insurance
(
$IUX.X |
Quote |
Chart |
News |
PowerRating) up 7.88%, and banks
(
$BKX.X |
Quote |
Chart |
News |
PowerRating) up 7.54%. The only
losing sector today was gold
(
$XAU.X |
Quote |
Chart |
News |
PowerRating) down 2.73%. In after-hours action,
Intel
(
INTC |
Quote |
Chart |
News |
PowerRating) missed their third-quarter results by two cents. Added to the
already overbought condition, we could see the market pull back and digest some
of the extraordinary gains of the past four days.
Volatility sold off again and fell to a one-month low. The VIX
(
$VIX.X |
Quote |
Chart |
News |
PowerRating) gapped
down, opened near its highs, and closed near the lows of the day. This shift in intraday sentiment shows a
drop in fear. We have a CVR 3 sell for today. The VXN
(
$VXN.X |
Quote |
Chart |
News |
PowerRating) also
gapped down, near its highs, and closed near
the lows of the day. This shift
in intraday sentiment shows a drop in fear.
Points of Significance:
| Volatility Index |
Close | Net Change |
Signals/Direction | % Above/Below 10 Day Moving Average |
Significance |
| VIX | 39.74 |
DOWN 2.87 |
CVR 3 SELL |
12.09% Below |
Not At Extreme |
| VXN | 56.37 |
DOWN 2.71 |
NONE |
3.82% 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 |
| Sandisk Corp. |
SNDK |
+ 15.62 |
5883 |
1091 |
| Citigroup |
C |
+ 12.63 |
76531 |
26910 |
| Analog Devices |
ADI |
+ 11.63 |
9097 |
1273 |
| Novellus Systems |
NVLS |
+ 11.51 |
9216 |
2696 |
| Intersil Holdings |
ISIL |
+ 10.54 |
6838 |
1355 |
| Mellon Financial |
MEL |
+ 10.68 |
10159 |
456 |
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 |
|
Health Management Associates
|
HMA |
51.1 |
39.5 |
49.5 |
28.5 |
| CDC Entertainment |
CEC |
57.7 |
48.6 |
47.6 |
32.1 |
| Texas Ultilities |
TXU |
115.2 |
99.6 |
105.2 |
17.3 |
| Eaton Corp. |
ETN |
48.1 |
42.3 |
45.2 |
24 |
| Amylin Pharmaceuticals |
AMLN |
75 |
66.2 |
86.1 |
56.4 |
| Tyco International |
TYC |
102.3 |
90.5 |
150.9 |
70.1 |
Spike Down
| Name | Symbol | IV | Previous IV |
High IV |
Low IV |
|
Golden State Bancorp
|
GSB |
12.2 |
28.5 |
35.1 |
10.3 |
| Citigroup |
C |
46.7 |
59.6 |
65 |
27.9 |
| General Motors |
GM |
66 |
81.7 |
76.5 |
27.4 |
| Parker Hannifin |
PH |
42.3 |
51.4 |
47.6 |
27.4 |
| Hilton Hotels |
HLT |
58.4 |
69.1 |
68.1 |
32.7 |
| Federal National Mortgage |
FNM |
39.3 |
48.5 |
52.1 |
19.7 |
Please use stops on every trade!