WhatsTrading.com Options Recap — 08/21/2012

| August 21, 2012 | 0 Comments More



The S&P 500 rallied to a high of 1,426.68 points early and briefly surpassed its April multi-year high of 1,422.38 this morning, but the early gains didn’t hold. The S&P is back to 1,414 and 12 points from its best levels. There’s been no economic data or positive earnings news to drive the market higher and the initial gains were driven largely by hopes for the Eurozone. Italy’s MIB Index rallied nearly 2.5 percent today on hopes EU officials will iron out plans to help Greece later in the week. The euro is up nearly 1 percent to 1.246 against the dollar. News that the People’s Bank of China injected record amounts of capital into their banking system seemed to bolster sentiment as well. Yet, shortly after midday, the gains on Wall Street had been erased and the Dow Jones Industrial Average is down 62 points, near session lows, heading into the final hour. The NASDAQ dropped 13 points ahead of Dell’s earnings, due out after the close. Housing is back in focus Wednesday morning with a report on Existing Home Sales and FOMC minutes from the latest Fed meeting are due out tomorrow afternoon.

Overall volume in the options mart is on pace to reach 16 million contracts and at respectable levels Tuesday. More than 800K of call activity is due to ex-dividend trading in Williams Companies (WMB). Stripping out today’s ex-div trading, 7.1 million calls and 5.9 million puts traded across the exchanges. (Try symbol @nondiv in Flow Monitor and 2 for Sentiment.) Apple Computer (APPL) continues to see high volume, as shares move aggressively off this morning’s record high of $674.88 and traded down $12.50 to $652.65. More than 25 million shares and 1.3 million contracts traded in Apple today. Best Buy (BBY) sees high volume, as shares fall 2.4 percent on earnings woes. 110,000 contracts have traded in the electronics retailer today. A number of large cap financials – BAC, GS, MS – have seen increasing call activity today. Groupon (GRPN) has seen high levels of put activity, with sellers of Sep 3.5 puts and Jan 3 puts apparently dominating the flow, after the stock fell to new record lows of $4.34. In the index market, CBOE Volatility Index (.VIX) traded quietly in a range through midday, but has seen an afternoon spike and is up 1.35 to 15.37. 235K calls and 155K puts traded in the VIX pit. 280K calls and 310K puts traded in the S&Ps.

Notable Flow
PZG – Bullish flow detected in Paramount Gold and Silver Corp with 6193 calls trading, or 3x the recent avg daily call volume in the name. Shares near $2.439 (0.029) with ATMIV lifting by 2.82 point and 72% of todays call premium trading offer side. (Trade-Alert) 14:41

SLM – Bullish flow detected in SLM Corporation with 6133 calls trading, or 17x the recent avg daily call volume in the name. Shares near $15.76 (-0.21) with ATMIV lifting by 2.37 point and 80% of todays call premium trading offer side. (Trade-Alert) 14:01

Bullish flow detected in NRG Energy Inc with 11037 calls trading, or 3x the recent avg daily call volume in the name. Shares near $22.14 (-0.1076) with ATMIV lifting by 1.02 point and 56% of todays call premium trading offer side. (Trade-Alert) 12:41

High options volume is being seen in AAPL, WMB, BBY, DELL, SLW, SYMC, VLO, CPN, MMM, URBN

Movers
Symbol Last Change %Change StdDevs
SPMD 3.65 +1.07 +41.5% 18.57
IMUC 2.28 -0.63 -21.6% 4.92
URBN 37.05 +5.77 +18.4% 14.20
DAKT 9.53 +1.47 +18.2% 9.56 Post-Earnings
CAS 10.80 +1.58 +17.1% 3.45
ASTX 2.73 +0.33 +13.8% 3.77
CMEDY 4.00 +0.45 +12.7% 2.37
AMCN 2.02 -0.27 -11.8% 2.03
AUMN 5.27 +0.52 +10.9% 2.95
NDSN 60.79 +5.79 +10.5% 6.78 Post-Earnings

Shakers (Implied volatility Movers)
Symbol IV[30d] IVChg IVChg% SkewAdjChg Last Change
BKS 62.6% -33.8 -35.0% -36.6 $12.00 -0.35 Post-Earnings
URBN 27.1% -14.4 -34.7% N/A $37.05 +5.77
OZM 30.9% +7.1 +30.0% N/A $7.90 -0.30
ARR 13.0% -4.9 -27.3% -5.9 $7.27 -0.06
AUTH 22.3% -7.8 -25.9% -7.9 $8.05 -0.04
MDT 17.6% -6.0 -25.3% -6.6 $41.05 -0.41 Post-Earnings
HRB 26.4% +5.3 +25.1% +4.2 $16.75 -0.21
IDTI 26.6% -8.2 -23.5% -9.3 $5.35 -0.08
PAA 14.3% +2.2 +17.9% +1.7 $87.48 -0.64
SPPI 49.6% +7.5 +17.8% +6.0 $11.79 -0.27

52-Week Highs
198 new highs: .AVSPY .BSZ .MNX .NDX .OEX .SPX .SPXPM .VSTRP .XEO .XSP AAPL AAT ACAS ACXM AEGN AGU AHS AIRM AIT AKR ALL AMG ANN ARI ARRY AYI AZPN BAM BANR BBCN BECN BGS BIP BKD BWS CBE CBS CBS/A CDNS CDR CFNL CHE CHS CINF CLGX CNI CNO CNQR CORN CP CPB CPWR CSJ CSM CSU CTAS CTGX CVA CVBF CYNO DDD DDM DOX DSW DVY EGOV EQIX ESC FFIC FLT FRGI FSIN FSS GEO GGC GIB GLT GRU GTIV GY HGR HNZ HOMB HRS ICUI IR IRET IVR IVV IVW IWB IWD IWV JJG KALU KCAP KIM KNXA KVHI LKQ LMCA LMT LNDC LXP LYB MAT MDAS MDT MENT MIC MLNX MTB MYL NCT NDSN NEU NNN NOC NSPH NVS NWN NYT OEF OILT OKSB OMC ONB PAA PCYC PDCO PDFS PDLI PFF PHG PNFP POL PRI PSS PVTB QQQ RCI RF RMD RPRX RPT RSU RYN SAFT SBS SCVL SDY SEIC SHEN SKX SNPS SOYB SPNC SPY SRDX SRPT SSO SSP SSYS STAN STI STWD SUSQ SVXY SXC SYA TCAP TJX TR TRP TRV TS UDOW UNFI UPRO URBN UVV VDC VIG VLO VOO VPFG VR VTI VUG VV VYM WAC WLK WNR WRI WXS XLK XLP

52-week Lows
46 new lows: AFFX ANGI BBY BV CACH CDXS DOG DPK DXD ENG EPV ERY FAZ GRPN IMUC KID LPR MBLX MCP MIDZ MZZ NXTM OTT PSQ QID REW RSW RWM SDOW SDS SH SKF SMDD SNMX SPXS SPXU SQQQ SRTY TECS TEU TWM TZA UVXY VIIX VIXY VXX

Top Equity Blocks
2.63m BAC 8.22 +0.07 +0.9% 13:19:43 – Burst
2.50m VXX 11.27 +0.04 +0.4% 14:12:40 – Average Price Trade
2.29m S 5.22 +0.11 +2.2% 10:51:22
1.65m JNS 8.75 +0.12 +1.4% 13:54:50 – Burst
1.35m YHOO 14.98 +0.02 +0.1% 11:48:55 – Burst
1.35m MHP 48.50 -0.39 -0.8% 12:29:55 – Burst
1.22m SYMC 17.95 +0.13 +0.7% 12:09:04
1.20m TROX 26.75 +1.21 +4.7% 13:27:31 – Average Price Trade
1.12m CSCO 19.20 +0.30 +1.6% 10:54:34
1.04m NLY 16.91 -0.01 -0.1% 11:15:59 – Tied to Options

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Category: Market Update

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About the Author (Author Profile)

Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.

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