Options Recap — 07/10/2012

Stock market averages opened positive, but have since fallen into the red. Alcoa (AA) is off 3.4 percent and the biggest loser in the Dow Jones Industrial Average on an earnings disappointment. Applied Materials (AMAT) is weighing on the tech sector after slashing its outlook. However, trading has been orderly and stability across Eurozone equity markets is possibly helping to keep a floor under the US equity market through midday. Germany’s DAX helped pace the modest advance after gaining .9 percent. In the commodities market, crude oil has given back 75 cent to $85.24 and gold lost $11 to $1578 an ounce. With no major economic news to guide trading, the benchmark ten-year Treasury is drifting 1 tick lower in lifeless action. Meanwhile, the Dow Jones Industrial Average is off 25 points and the tech-heavy NASDAQ lost 16.3 points. Overall options activity is up from Monday’s anemic levels, but remains very light. With two hours left to trade, total volume across all the exchanges is 4.2 million calls and 3.8 million puts.

Trader Talk
PFGBest, Iowa Broker, Latest to Face Fraud Charges – Link
Regulators Shut It Down
CFTC Votes on Swaps
Europe Lays the Groundwork for Bond Buybacks — Bloomberg

Movers
Symbol Last Change %Change StdDevs
MAKO 14.47 -10.14 -41.2% 12.70
JRCC 2.18 -0.69 -24.0% 2.19
QCOR 45.09 -12.55 -21.8% 5.39
BMTI 3.41 +0.61 +21.7% 4.01
DEST 17.10 -4.72 -21.6% 16.04
CTEL 3.93 +0.50 +14.4% 5.61
AER 12.71 +1.56 +14.0% 8.71
BZH 2.93 -0.45 -13.4% 4.23
AMRS 2.84 -0.39 -12.1% 1.42
CACH 4.89 +0.51 +11.6% 3.27

Shakers (Implied volatility Movers)
Symbol IV[30d] IVChg IVChg% SkewAdjChg Last Change
QCOR 92.3% +40.6 +78.6% N/A $45.10 -12.54
AGP 4.2% -3.5 -45.6% -2.6 $89.35 +0.56
MBI 75.6% +21.0 +38.4% +17.9 $9.70 -0.91
MJN 42.9% +11.5 +36.8% +5.5 $75.12 -3.58
SHAW 40.5% -15.3 -27.4% -17.2 $25.91 -2.48 Post-Earnings
AA 34.0% -11.1 -24.6% -12.4 $8.38 -0.38 Post-Earnings
ARR 17.6% -5.7 -24.3% -10.2 $7.27 -0.17
PCS 77.6% +13.2 +20.6% +11.8 $6.44 +0.12
AMT 22.2% +3.7 +19.8% +1.5 $70.05 -1.77
ETP 19.5% +3.1 +18.6% +2.4 $44.55 -0.41

52-Week Highs
110 new highs: AAT ABT AGNC AGP AMGN AMLN AMT AMTG APOG ARI ARRS ASML ATO AVA AVD AWK AWR BECN BIIB BMRN BRLI BTI CASY CATM CBL CBRL CHTR CLGX CTFO CVG CYMI DG DK DYAX ECPG EHTH EQR EXAS FCF FRT GGP HA HCN HCP HSY HW IMGN INCY INFI INOD IRDM JMBA KMB KRC LNCR LOPE MDCO MDF MDVN MGAM MHO MO MTH MUSA NSM NWE OCN OHI OMPI PDLI PHM PM PNW POR PSB PSEC RA RAI RAVN RTN RYL SBAC SEMG SGEN SIR SMBL SNAK SNTS SPF SPG SPPI SRCL SUI SUSS SWHC SWX TGT TOL TTC UIL UMBF UNF UNS VAL VSI WMT WR WSO WTR WYN

52-week Lows
51 new lows: ANR ASX ATML AWC BPI BRFS CCO CDE CHKP CTEL CTRP CVVT CYOU EA FCN FLIR FNFG FOSL FST GPRE GTI HMIN HPQ ITG JAG JCP JNPR JOY KRO LEDS LRCX MAKO MEET MRVL NOK NYMX PAAS PLCM PWAV QTM R RVBD SLH SMS SONS TTWO VC VTUS WBMD WLT YZC

Top Equity Blocks
2.50m NOK 1.78 -0.06 -3.0% 11:17:42 – Average Price Trade
2.35m TQNT 5.20 -0.13 -2.4% 10:21:03
2.30m SIRI 2.06 -0.01 -0.7% 12:51:53
2.00m S 3.20 -0.01 -0.3% 13:54:08
1.60m HRB 16.15 +0.07 +0.4% 13:18:30 – Burst
1.50m RIMM 7.30 -0.38 -4.9% 11:52:35 – Tied to Options
1.50m NOK 1.78 -0.06 -3.2% 11:17:05 – Average Price Trade
1.34m AMLN 30.78 +0.04 +0.1% 12:33:20
1.06m LNCR 41.56 +0.05 +0.1% 12:50:37
1.00m LUV 9.63 +0.39 +4.2% 12:58:44

Notable Flow
MJN – Bearish activity detected in Mead Johnson Nutrition Company with 5720 puts trading, or 8x the recent avg daily put volume in the name. Shares near $73.91 (-4.79) with ATMIV lifting by 9.18 point and 59% of todays put premium trading offer side. (Trade-Alert) 14:11
LSI – Bullish flow detected in LSI Corporation with 10734 calls trading, or 12x the recent avg daily call volume in the name. Shares near $6.09 (-0.11) with ATMIV lifting by 1.81 point and 77% of todays call premium trading offer side. (Trade-Alert) 13:41
MWW – Bullish flow detected in Monster Worldwide Inc with 5099 calls trading, or 4x the recent avg daily call volume in the name. Shares near $8.47 (0.37) with ATMIV lifting by 3.60 point and 57% of todays call premium trading offer side. (Trade-Alert) 13:21

High options volume is being seen in Alcoa (AA), Caterpillar (CAT), and McMoran (MMR)

Tags: featured, market update, Sentiment

Category: Market Update