Options Recap — 7/13/2012

Stock market averages are up sharply and led by the financials Friday. JP Morgan (JPM) jumped 5.9 percent and is the best gainer in the Dow Jones Industrial Average after the bank reported a solid quarterly profit on better-than-expected revenues despite the “London Whale” trading debacle. Wells Fargo (WFC) is also rallying on earnings news. Meanwhile, stocks were broadly higher across Europe, led by a 1.9 percent rally in Germany’s DAX. Worldwide equity markets were steady after data showed China’s economy growing at a 7.6 percent pace in the most recent quarter. The number was better-than-expected, but not strong enough to take further monetary easing off the table. In the commodities market, crude oil prices ticked up $1.14 to $87.22 and gold gained $26 to $1591 an ounce. On Wall Street, the Dow Jones Industrial Average is up nearly 200 points and not far from session highs. The NASDAQ gained 44 points. CBOE Volatility Index (.VIX) is off 1.30 to 17.03. Trading in the options market was busy this morning, but has slowed heading into the summer weekend. 6.1 million calls and 5.5 million puts traded across the exchanges so far.

Trader Talk
JPM Morgan – Big Profit Despite Trading Losses
Upside to China’s Downside
Next Shoe? Muni Bankruptcies
Peregrine Financial Chief Executive Officer Russell Wasendorf said in a signed statement he perpetrated a fraud at his Cedar Falls, Iowa company. It stretched back two decades. More here–> MarketWatch
Full Suicide Note
Commodities Up:
Crude Oil: +$1.14, $87.22
Gold: $26, $1591
Corn Still Popping – Chart
Pit Bull rule look for a low the Thursday-Friday week before the expiration – Mr. Top Step

Have a Great Weekend! Thanks for visiting WhatsTrading.com!!!

Movers
Symbol Last Change %Change StdDevs
BPI 9.84 -3.13 -24.1% 2.49
TEU 6.68 -1.43 -17.6% 9.61
LXK 20.38 -3.93 -16.2% 6.18
AFFY 16.53 +2.29 +16.1% 3.35
WNC 6.54 +0.79 +13.7% 3.87
AMPE 3.20 -0.46 -12.6% 1.48
OPTT 2.62 -0.37 -12.4% 0.94 Post-Earnings
SVU 2.37 -0.33 -12.1% 0.77
EMKR 4.75 +0.50 +11.8% 3.17
ADES 23.51 +2.36 +11.2% 3.52

Shakers (Implied volatility Movers)
Symbol IV[30d] IVChg IVChg% SkewAdjChg Last Change
BPI 116.9% +46.8 +66.8% +23.0 $9.83 -3.14
JPM 27.6% -10.5 -27.6% -8.0 $36.05 +2.02 Post-Earnings
LOPE 44.8% +9.0 +25.2% +8.4 $20.83 -0.28
RNF 29.6% -9.4 -24.2% -8.3 $28.93 +0.60
VHC 94.4% +17.9 +23.5% +13.9 $40.53 +2.76
WFC 22.4% -5.5 -19.6% -4.7 $33.86 +1.01 Post-Earnings
FGP 30.1% -6.6 -18.0% -6.2 $19.71 +0.18
KGC 57.0% +8.4 +17.4% +8.9 $8.35 +0.48
STZ 26.8% -5.4 -16.7% -4.3 $29.34 +0.60
TEF 34.4% -6.5 -15.9% -5.0 $12.21 +0.25

52-Week Highs
140 new highs: ABAX ACC ACXM AFFY AGP AMGN AMSG AOS ARI ATO AVA AWK BLX BRK/B BXS CATM CCI CFNL CHD CL CLGX CLP CMS CNL COR CPT CTL CYT DEI DHI DK DLR DPS DVA DYAX EDE EDR EFX EQR EXAS EXP EXR FCBC FCF FELE FFNW FRT FUN GLT GRFS GXP HCN HCP HE HR HSNI HW IDA INDB ISBC JACK JNJ KMB KW LANC LCC LII LL LLY LNT LPX MMP MON MRH MRK MTH MUSA NAVG NEE NHI NKTR NNN NSM NU NWE O OCN OHI OREX OTTR OZRK PAA PACW PFS PHM PNW POR PPS PSA PSS RAI RAVN SCG SCI SCVL SEMG SIR SKT SPNC SPSC SRDX SSNC SSS STWD STZ SWHC SWX TCBI TEG TGT THRX TMH TMK TUES UFPI UGP UIL UNF UNS VPFG VTR VZ WEC WIBC WMT WNR WR WST WTR WY

52-week Lows
33 new lows: ACLS ADTN AOBI BPI CCO CY EDMC EXM FCN FNSR GILT GMCR GME HPQ IVN JRCC KEM LEDS LXK MKTS MOTR NCQ NILE PAL PNSN RAH SIMG SPWR SVU TC TTWO VOG WYNN

Top Equity Blocks
2.58m LINTA 17.80 +0.37 +2.1% 15:05:19 – Tied to Options
2.00m SIRI 2.04 -0.03 -1.2% 10:09:30
1.50m MU 6.15 +0.02 +0.3% 13:14:39
1.40m MU 6.16 +0.03 +0.5% 12:42:29 – Burst
1.09m SIRI 2.05 -0.01 -0.7% 15:46:20
1.00m BAC 7.68 +0.20 +2.7% 12:29:53
814k DXCM 12.95 +0.23 +1.8% 13:41:28 – Burst
814k SIRI 2.05 -0.01 -0.7% 10:28:31
750k PBI 14.00 +0.16 +1.2% 09:48:13
686k SNV 1.91 +0.02 +1.1% NYSE-ARCA 10:01:37 – Burst

Notable Flow
VHC – Bullish flow detected in VirnetX Holding Corp with 19060 calls trading, or 3x the recent avg daily call volume in the name. Shares near $40.4744 (2.7044) with ATMIV lifting by 17.94 point and 56% of todays call premium trading offer side.

DNR – Bullish flow detected in Denbury Resources Inc with 7493 calls trading, or 7x the recent avg daily call volume in the name. Shares near $14.095 (0.355) with ATMIV lifting by 1.09 point and 80% of todays call premium trading offer side. (Trade-Alert) 14:01

ETN – Bullish flow detected in Eaton (ETN), with 14938 calls trading, or 5x the recent avg daily call volume in the name. Shares near $38.08 (0.97) with ATMIV lifting by 1.24 point and 56% of todays call premium trading offer side. (Trade-Alert) 12:41

PBY – Bullish flow detected in Pep Boys Manny Moe and Jack with 2026 calls trading, or 6x the recent avg daily call volume in the name. Shares near $9.9 (0.14) with ATMIV lifting by 1.08 point and 80% of todays call premium trading offer side. (Trade-Alert) 12:21

High options volume is being seen in P&G (PG), Wells Fargo (WFC), and iShares Long-term Bond Fund (TLT)

Tags: featured, market update, Sentiment, Unusual Options activity

Category: Market Update