WhatsTrading.com Options Recap — 09/11/2012

Trading has turned mixed late-Tuesday. Hopes that Germany will ratify the European Stability Mechanism tomorrow helped send the DAX index up 1.3 percent in Eurozone trading. The euro is up .7 percent to 1.285 against the dollar and most other European equity markets scored gains as well. Crude oil ticked 43 cents higher to $96.97 per barrel and gold gained $2 to $1734. On economic front, a report showed the Trade Balance at -$42 billion in July, up a bit from $41.9 billion the month before and not as wide as the $44 billion that had been expected. The data seemed to have minimal impact. The earnings news is also light and, after rallying triple digits into midday, the Dow Jones Industrial Average is slipping off session highs. With about 30 minutes left to trade, the Dow is up 60 points. The NASDAQ has erased midday gains and is off 5 points.

CBOE Volatility Index (.VIX) is off morning lows of 15.46 and now up .02 to 16.30. Trading is active in the VIX pit, with 771,000 calls and 377,000 puts traded on the index and one hefty strangle purchase driving the flow in Nov 18 puts and Dec 24 calls. Overall options volumes are respectable, with 8.6 million calls and 5.6 million puts traded across the exchanges so far. Almost 2 million contracts of call volume is due to ex-div trading in MO, KO, ARCC and others. AIG is seeing a flurry of activity on news the government is trimming its ownership stake in the company to 22 percent. 262K options traded on AIG today. LNG saw a flurry of call activity this morning before launching 5 percent higher into midday. Shares are now up 38 cents to $16.10 and 58,000 options traded on the natural gas company. Some of the mortgage insurers – MTG and RDN – are seeing bullish trading. Finally, we’ve sent out options alerts on a number of large tech names today as well, including Microsoft, Marvell, Cisco, and Intel

Notable Flow
HST – Bullish flow detected in Host Hotels and Resorts Inc with 12947 calls trading, or 38x the recent avg daily call volume in the name. Shares near $16.555 (0.085) with ATMIV lifting by 1.96 point and 93% of todays call premium trading offer side. (Trade-Alert) 15:01

CLWR – Bullish flow detected in Clearwire Corporation with 5300 calls trading, or 3x the recent avg daily call volume in the name. Shares near $1.64 (-0.05) with ATMIV lifting by 3.28 point and 72% of todays call premium trading offer side. (Trade-Alert) 14:21

BCS – Bullish flow detected in Barclays Bank Plc with 2683 calls trading, or 6x the recent avg daily call volume in the name. Shares near $13.69 (0.59) with ATMIV lifting by 1.06 point and 56% of todays call premium trading offer side. (Trade-Alert) 13:01

High options volume is being seen in .VIX, MO, KO, AIG, UNG, ARCC, GMCR, CXW, NYX, LNG

Movers
Symbol Last Change %Change StdDevs
CTIC 3.55 +0.98 +38.0% 4.57
SNSS 3.50 +0.86 +32.6% 5.15
NAVB 2.64 -0.87 -24.8% 9.69
REDF 4.27 +0.71 +19.9% 4.20
LRN 20.32 -3.14 -13.4% 5.77
BWEN 2.24 +0.24 +12.1% 2.20
GFA 4.33 +0.46 +11.9% 2.86
MNTG 3.70 +0.39 +11.8% 4.61
EDMC 3.94 +0.41 +11.6% 2.09
OPTT 3.40 +0.35 +11.5% 2.32

Shakers (Implied volatility Movers)
Symbol IV[30d] IVChg IVChg% SkewAdjChg Last Change
VQ 41.4% +15.4 +59.1% N/A $11.62 -0.25
ARCC 19.9% +6.6 +50.1% N/A $17.65 +0.09
NLY 11.7% +2.6 +28.8% N/A $17.62 +0.03
PPO 70.1% +14.1 +25.2% +14.4 $36.26 +0.30
ARR 12.1% -4.0 -24.8% N/A $7.60 +0.02
CVI 34.0% +5.3 +18.5% +5.2 $33.99 +0.63
GCI 30.7% +4.5 +17.1% +3.1 $17.01 +0.71
SHAW 10.4% -2.0 -15.9% -2.0 $42.92 +0.11
Z 56.5% -10.6 -15.7% -9.8 $41.08 +0.80
ARIA 41.7% +5.6 +15.4% +6.0 $22.76 +0.40

52-Week Highs
179 new highs: .DJX .HGX .XDC ABG ABT ACAS AEGN AFFY AGNC AGP AKR ALGN ANN APP ARCC ARIA ARII AXS AZZ BCE BCEI BDSI BECN BGG BGS BMTI BONT CAM CBRL CFN CGI CGV CHE CM CNI CNO CSE CTFO CVG CVI CVX DDM DDR DHI DIA DIN DLX DX EGHT EMAN EMB EPL FAF FCH FLS FMC FNF FRME FSIN FSS FUL FVE FXC GCI GE GTIV HCBK HCC HOV HRS HTWR HVT HW HYG IIJI IJR IJS IJT INFI IVE IWN IWS JAH JNK JOE KEYW KSU LAD LOPE LYB MANH MCGC MDP MDT MFA MITT MMSI MPC MPG MRH MTB MTX MWA MYGN NRF NSR NTCT OCN OMC OMN ONB PAG PCH PCY PDFS PFF PG PGF PGX PHB PKI PRXL PSX RAX RBC RCI RDN RE REM RGA RPRX RSP RYL RYN SAA SBX SDY SFI SFL SHO SIM SMA SNI SNSS SNTS SNY SPNC SPSC STEI STWD SXL SYA SYT TICC TLLP TMH TOL TRP TRV TWO UDOW UGA URBN USPH VB VBR VLO VMED VOE VTV VYM WAC WDFC WHR WOR WSM WY XHB XL

52-week Lows
33 new lows: BCOV BEBE CAH COOL DOG DPK DUG DXD EFU EFZ ELP ENG EPV ERY EUFX EXC FSA GASX GERN JIVE KEM LDK MANU RWM SDOW SIJ SRTY TEO THQI TWM TZA VIXM VXZ

Top Equity Blocks
4.67m S 5.15 10:19:59
4.25m GEN 2.60 09:50:25
3.48m ZNGA 2.83 +0.01 +0.2% 13:46:06
2.00m BP 42.31 +0.27 +0.6% 09:45:30
1.94m EZU 30.69 +0.28 +0.9% 10:03:52
1.94m EZU 30.79 +0.38 +1.2% 10:24:33
1.69m BAC 8.91 +0.33 +3.8% 14:59:29
1.50m CVH 41.40 -0.03 -0.1% 11:51:41 – Average Price Trade
1.50m EZU 30.67 +0.45 +1.5% 10:39:19 – Out of Sequence

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Category: Market Update