WhatsTrading Options Recap — 08/31/2012

Stock market averages rallied shortly after the text from Fed Chairman Bernanke’s speech in Jackson Hole, WY made the rounds, and now trading is slowing heading into the three-day Labor Day weekend. The head of the Federal Reserve didn’t offer too many surprises, but investors seemed to find solace in the fact that the Fed stands ready to buy more bonds if needed. The knee-jerk reaction was a modest market decline, but the weakness proved short-lived. The day’s other economic news was mixed, with Chicago PMI falling more than expected, but UofMichigan Sentiment and Factory Orders up more than anticipated. Action heated up in the commodities market, with crude oil gaining $1.85 to $96.47 per barrel and gold up $32.5 to $1689.5 an ounce. Heading into the final two hours of trading for August, the Dow Jones Industrial Average is up 85 points on the day and up a modest 81 points on the month. The NASDAQ has added 14 points on the day and easily outperformed the Dow for the month, gaining 4.2 percent.

Overall options volume was heavy around the Bernanke news and is now slowing ahead of the weekend. 5.1 million calls and 4.3 million puts traded across the exchange. The projected volume is about 12.3 million and a bit less than the average for the month. 5.1 million calls and 4.3 million puts traded across the exchanges so far. Some of the mining names – HMY, NEM, AUG, GOLD – are seeing increasing options volume, as gold and silver prices jump higher. Brazilian metals giant VALE was the subject of sizeable put spreads. More than 230,000 options traded in Facebook (FB), as the stock makes run at $18 per share and new lows. Cirrus Logic (CRUS) and Skyworks (SWKS) saw bullish flow early on speculation about the mid-Sept iPhone 5 launch. Meanwhile, VIX hit a morning high of 18.04, but is now down .37 to 17.46. VIX lost about 1.5 points for the month. Monday is a holiday. Data on manufacturing, construction spending, auto sales, and employment are due out next week.

Have a great Labor Day holiday!
Notable Flow
DB – Bullish flow detected in Deutsche Bank with 3763 calls trading, or 2x the recent avg daily call volume in the name. Shares near $35.3485 (1.4885) with ATMIV lifting by 1.19 point and 63% of todays call premium trading offer side. (Trade-Alert) 12:21

SRPT – Bullish flow detected in Sarepta Therapeutics Inc New with 6539 calls trading, or 3x the recent avg daily call volume in the name. Shares near $16.01 (1.61) with ATMIV lifting by 9.35 point and 68% of todays call premium trading offer side. (Trade-Alert) 11:21

SWKS – Bullish flow detected in Skyworks Solutions Inc with 7741 calls trading, or 3x the recent avg daily call volume in the name. Shares near $30.145 (0.745) with ATMIV lifting by 3.90 point and 74% of todays call premium trading offer side. (Trade-Alert) 10:21

High options volume is being seen in VALE, XLV, NEM, OVTI, RCL, UPL, SRPT, EWG, CHL, SWKS

Movers
Symbol Last Change %Change StdDevs
CPSL 2.85 -0.53 -15.7% 1.57
SABA 9.20 +1.22 +15.3% 4.42
SPLK 34.84 +4.34 +14.2% 7.05 Post-Earnings
CMEDQ 2.92 -0.48 -14.1% 1.38
ZN 2.82 +0.35 +14.0% 2.96
DUST 34.84 -5.06 -12.7% 3.14
NUGT 12.91 +1.44 +12.5% 3.19
SRPT 16.00 +1.60 +11.1% 2.08
AUMN 5.32 +0.52 +10.8% 2.26
ESL 58.63 +5.69 +10.7% 4.87 Post-Earnings

Shakers (Implied volatility Movers)
Symbol IV[30d] IVChg IVChg% SkewAdjChg Last Change
SPLK 38.2% -29.6 -43.7% -28.5 $34.84 +4.34 Post-Earnings
SAI 27.2% -18.9 -41.0% -18.4 $12.20 +0.39 Post-Earnings
ZUMZ 47.2% -22.5 -32.2% -29.4 $29.08 -3.14 Post-Earnings
OVTI 51.0% -20.5 -28.7% -19.1 $16.55 +0.64 Post-Earnings
NAT 29.6% -7.6 -20.6% -7.1 $11.76 +0.41
SRPT 123.0% +16.2 +15.2% +13.7 $16.00 +1.60
BPT 41.9% -7.2 -14.6% -7.4 $88.10 -1.41
DEO 13.1% -2.2 -14.3% -2.8 $109.23 -0.67
TFM 31.8% -5.1 -13.8% -4.9 $57.56 -0.09
EA 44.5% +5.0 +12.8% +4.3 $13.39 +0.39

52-Week Highs
72 new highs: .HGX AEO AKR ANSS ARCT ARIA BECN BIOS BONT BUD CAB CBST CCI CDNS CDR CENTA CG CIU CLNY CONN COST CSJ CYT DENN DISCK DLX EMB FBHS FITB FNV GGC GY HCC HGR HTH HYD HYG ITB KIM LIOX MDC MHP MIL MPC PAYX PCH PFF PLCE PSS REM RGLD RTH RWT SMRT SPF SRPT STC STWD STZ SWKS TCBI TFX TKC TMH UA UGA WMC WNR WWW XHB XLV ZLC

52-week Lows
27 new lows: ACH AMD AONE ATV AU CPL CRME CZR DDMG DELL DM FB GRPN GSE HMY JRJC KID MATX MBLX MRVL NOR OTT PMFG REDF URRE USTR VIV

Top Equity Blocks
2.00m TROX 26.25 +0.25 +1.0% 12:41:00 – Average Price Trade
1.93m VWO 40.12 +0.31 +0.8% 12:56:53 – Average Price Trade
1.73m IAU 16.42 +0.30 +1.9% 13:43:53 – Burst
1.71m NOK 2.81 +0.08 +2.8% 13:19:51 – Out of Sequence
1.68m DBC 28.75 +0.26 +0.9% 13:59:50
1.33m IWF 65.65 +0.25 +0.4% 13:51:37
1.25m MCD 89.10 +0.40 +0.5% 09:56:52 – Burst
1.02m EEM 39.27 +0.35 +0.9% 12:04:17 – Next Day
1.00m XLF 15.15 +0.10 +0.7% 14:27:16
1.00m XLF 15.15 +0.11 +0.7% 14:26:08 – Derivatively Priced

Tags: featured, market update, Sentiment

Category: Market Update