Options Recap — 7/2/2012

Stocks are struggling in uninspired market action after the latest ISM manufacturing index fell short of expectations. The report, released 30 minutes into trading Monday, was down to 49.7 in June, from 53.5 in May and below estimates of 52.2. The poor reading overshadowed a better-than-expected .9 percent increase in May industrial production. Stock market averages fell into the red on the headline, but the selling never gathered any momentum. Volumes are light heading into Tuesday’s abbreviated trading session and Wednesday’s Fourth of July holiday. In Europe, stock market averages continued to rally. Germany’s DAX and France’s CAC 40 both gained more than 1 percent. However, crude oil lost $1.73 to $83.23 and gold slipped $6 to $1598 an ounce. Bonds are bid on the poor ISM print and the benchmark ten-year Treasury has added 24/32nd, bringing its yield back to 1.57 percent. The Dow Jones Industrial Average is down 50 points, but the NASDAQ is holding a 1-point gain. CBOE Volatility Index (.VIX) is up .31 to 17.39 amid light volumes in the options market. 4 million calls and 3.9 million puts traded so far.

Merger Monday
Dell to buy Quest Software
Bristol Myers and Amalyin
The Linde Group to Buy Lincare
Ingram and Brightpoint

Mixed Data
June ISM = 49.7
Industrial Production

Trader Talk
Holiday Schedule
Jobs Data Friday
ECB Thursday
Affordable Earnings – MRA

Movers
Symbol Last Change %Change StdDevs
CELL 8.83 +3.42 +63.2% 14.90
MATX 28.02 -25.23 -47.4% 0.00
LQDT 38.25 -12.93 -25.3% 6.01
LNCR 41.33 +7.31 +21.5% 4.21
ATPG 4.03 +0.67 +19.9% 2.07
WFR 2.54 +0.36 +16.8% 3.85
HZNP 8.27 +1.14 +16.0% 3.83
AYI 58.19 +7.28 +14.3% 5.84 Post-Earnings
GNRC 20.49 +2.43 +13.5% 5.86
GAGA 4.33 -0.57 -11.6% 1.78

Shakers (Implied volatility Movers)
Symbol IV[30d] IVChg IVChg% SkewAdjChg Last Change
LNCR 7.0% -58.4 -89.3% N/A $41.33 +7.31
AMLN 5.8% -47.6 -89.2% -36.0 $30.69 +2.49
LQDT 79.9% +26.6 +50.0% N/A $38.33 -12.85
ALGN 56.8% +16.1 +39.7% +15.4 $34.54 +1.08
SYY 14.2% +3.5 +32.2% N/A $29.75 -0.06
OPEN 58.3% +10.6 +22.2% +8.9 $39.91 -5.10
PLL 25.1% +4.6 +22.2% +3.4 $53.87 -0.94
WM 17.0% +3.0 +21.2% +2.1 $33.11 -0.29
HTS 10.1% +1.6 +19.1% -0.1 $28.71 +0.11
ETN 26.7% +4.2 +18.9% +1.3 $38.85 -0.78

52-Week Highs
205 new highs: AACC AAT ABAX ABT ACIW ACXM ADS AIRM AKRX ALL ALXN AMGN AMLN AMT ASFI ASPS ATO AZZ BF/B BIIB BIP BLDR BMRN BMY BRK/B BRLI BRO CATM CATO CBL CBM CBRL CCI CG CHD CHSI CINF CLGX CLUB CMCSA CMCSK CMN CNL COR COST CPHD CSGP CSOD CVG CVS CYBX CYMI DDD DENN DFS DFT DHI DISCK DK DUK DVA ECHO ECL EGP ELGX ELT EW EXP EXR FCF FE FIS FISV FMX FRED FRT GR HAE HCN HCP HE HOMB HPP HR HRL HSY HTWR ICE IDXX IHS IMGN INWK IPHS ISIS IT JACK KO KOF KVHI LCC LEN LL LLY LNCR LNDC LNT LTC MATX MCK MDF MDSO MDVN MGAM MHO MKC MMS MO MPC MRC MRH MRK MTH MTN MUSA MWIV N NAVB NEE NHI NNN NPBC NSM NU NWE NWS O OCN OMPI ONXX PCG PCYC PDCO PDLI PFS PGN PHM PKT PNFP PNM POR PRE PRGO PRI PSEC PWR RAI RPM RRMS SAM SBAC SCG SGEN SIX SLXP SMBL SPF SPSC SRDX SRE SSNC STZ SUI SXCI T TAM TCAP TDG TEG TGH TOL TRIP TSS TU TWTC UIL UMBF UNF UNFI UNP USG V VRSK VSI VTR VZ WAL WDFC WEC WIBC WMGI WMT WNR WR WST WTR

52-week Lows
17 new lows: ASYS AUDC BSDM CBAK CTRP CWTR ENZ FNFG GPRE OPXA OXGN RIMM ROVI SVNT TXCC VTUS WILN

Notable Flow
QLIK – Bullish flow detected in Qlik Technologies Inc with 5591 calls trading, or 4x the recent avg daily call volume in the name. Shares near $20.57 (-1.55) with ATMIV lifting by 3.57 point and 69% of todays call premium trading offer side. (Trade-Alert) 14:01

SCHW – Bullish flow detected in Charles Schwab Corporation with 2663 calls trading, or 2x the recent avg daily call volume in the name. Shares near $12.825 (-0.105) with ATMIV lifting by 1.16 point and 64% of todays call premium trading offer side. (Trade-Alert) 13:01
QIHU – Bearish activity detected in Qihoo 360 Technology Co Ltd with 4215 puts trading, or 4x the recent avg daily put volume in the name. Shares near $17.61 (0.32) with ATMIV lifting by 7.07 point and 60% of todays put premium trading offer side. (Trade-Alert) 11:51

Over the first hour 166775 contracts have traded in SPX today, 1.48x the recent hourly average, with 70878 calls and 95897 puts trading as the index trades near $1358.61 (-3.55). Front term atm implied vols are near 15.9% and the CBOE VIX is currently near 17.65 (0.57). Trade-Alert) 10:31

Tags: featured, market update, Sentiment

Category: Market Update