Wednesday’s Options Alerts
Stocks ended their
three-day winning streak today as warnings from chip and video game stocks
overshadowed better-than-expected results from the telecom arena. The major
averages were in trouble from the start after Texas Instruments
(
TXN |
Quote |
Chart |
News |
PowerRating)
reported third-quarter results late yesterday that missed estimates. In addition,
the company warned that they expect fourth-quarter revenues to be down 10%.
Altera Semiconductor
(
ALTR |
Quote |
Chart |
News |
PowerRating) also warned that their fourth quarter results
will come in "flat.
Video game makers also took a hit
today as THQ Inc.
(
THQI |
Quote |
Chart |
News |
PowerRating) reported better-than-expected third-quarter
results, but warned of a soft holiday season. At the
close, the Dow
(
$INDU |
Quote |
Chart |
News |
PowerRating) dropped 88.08 points or 1.03%. The S&P
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) dropped
9.56 points or 1.06% and, the Nasdaq
(
$COMPX |
Quote |
Chart |
News |
PowerRating) dropped 16.92 points or
1.29%. All three major indices have come a long way since the pivot on Oct/ 10. Since then, the Dow has gained 18.75%, S&P up 17.19%, and Nasdaq up
12.81%. This was the only the second downbar in the last nine sessions. A deeper
pullback could be in store.
Best-performing
sectors today were goldl
(
$XAU.X |
Quote |
Chart |
News |
PowerRating) up 5.79%, airlines
(
$XAL.X |
Quote |
Chart |
News |
PowerRating)
up 3.23%, and telecoms
(
$XTC.X |
Quote |
Chart |
News |
PowerRating) up 2.86%. Worst performing sectors were Internets
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) down
6.10%, oil
(
$XOI.X |
Quote |
Chart |
News |
PowerRating) down 3.42%, chemicals
(
$CEX.X |
Quote |
Chart |
News |
PowerRating) down 2.73%, and
paper
(
$FPP.X |
Quote |
Chart |
News |
PowerRating) down 2.66%. Nothing to report on the economic front today,
but the Fed’s Beige Book report will be out tomorrow.
The VIX
(
$VIX.X |
Quote |
Chart |
News |
PowerRating) gapped up, opened in the uppper half of its range, and closed
near its low. This shift in intraday sentiment shows a drop in fear.
The VIX triggered a CVR 6 sell signal. The VXN
(
$VXN.X |
Quote |
Chart |
News |
PowerRating) gapped up, opened near its highs, but closed near its open. This shift
in intraday sentiment also shows a drop in fear. The VXN triggered a
CVR 5 sell.
Points of Significance:
| Volatility Index |
Close | Net Change |
Signals/Direction | % Above/Below 10 Day Moving Average |
Significance |
| VIX | 39.34 |
UP 0.43 |
CVR 6 SELL |
6.71% Below |
Not At Extreme |
| VXN | 53.61 |
UP 1.27 |
CVR 5 SELL |
6.57% 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 |
| SPX Corp. |
SPW |
– 17.30 |
1453 |
241 |
| Apollo Group |
APOL |
– 8.14 |
3841 |
1053 |
| Gillette |
G |
– 5.13 |
7178 |
1637 |
| InVision Technologies |
INVN |
– 4.79 |
7886 |
2018 |
| CareMax |
CMX |
+ 4.45 |
1850 |
412 |
| Health Management |
HMA |
– 3.13 |
2516 |
450 |
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 |
|
SPX Corp
|
SPW |
63 |
47.3 |
67.8 |
36.3 |
| Career Education |
CECO |
58.9 |
49 |
52.7 |
41.5 |
| Apollo Group |
APOL |
46.8 |
39.3 |
58.3 |
36.8 |
| Electronic Arts |
ERTS |
52 |
44.1 |
68.4 |
39.2 |
| Johnson & Johnson |
JNJ |
35.4 |
30.1 |
46.1 |
20.2 |
| Activision |
ATVI |
83.2 |
71.1 |
80.7 |
49 |
Spike Down
| Name | Symbol | IV | Previous IV |
High IV |
Low IV |
|
Mckesson
|
MCK |
41.1 |
47.6 |
48.2 |
30.1 |
| Yellow Corp. |
YELL |
97.6 |
113 |
90.3 |
41 |
| Cymer |
CYMI |
82.9 |
74 |
115.3 |
60.9 |
| Sempra Energy |
SRE |
46.4 |
52.1 |
54.3 |
26.1 |
| Radio Shack |
RSH |
59.4 |
65.9 |
62 |
33.2 |
| Financial Services Group |
PNC |
45 |
49.9 |
64.6 |
24.6 |
Please use stops on every trade!