WhatsTrading.com Options Recap — 09/28/2012

Stock market averages are lower on poor economic data and end-of-quarter position squaring Friday. Data released early showed Personal Incomes increasing .1 percent and Spending up .5 percent, which was in line with expectations. However, Chicago’s PMI fell to 49.7 in September, from 53 last month and below expectations of 52.9. Meanwhile, Univ of Michigan Sentiment Index for the end of September was 78.3, down from 79.2 mid-month and below expectations of 79.0. Stock market averages were lower on the data through midday and amid cautious trading ahead of stress test results of Spanish banks. The results, which were released after the close of trading in Europe, sparked a modest rally in afternoon actin, but the Dow Jones Industrial Average has since slipped once again into the final hour. End of quarter position adjustments after the Dow’s 4.4 percent climb since June are probably affecting the market action as well. The industrials are down 46 points.

Overall trading volumes are respectable today. 6.4 million calls and 5.9 million puts traded across the exchanges so far. SPDR 500 Trust (SPY) is down 49 cents to $144.15 and the expiring September Quarterly 144 puts and calls are the day’s most actives. Research In Motion (RIMM) sees heavy trading on the heels of its earnings report and Blackberry 10 product launch announcement. The stock is up 56 cents to $7.7 in heavy volume of 120 million shares and more than 285K options traded on RIM today. iShares Hong Kong Fund (EWH) is seeing high volume, driven by a massive synthetic short stock position in the Jan 18 combo. Large blocks of calls traded on Anadarko Petroleum (APC). Nike (NKE), Mittal (MT), and Delta (DAL) are also seeing noteworthy options trading activity as well.

No recap Monday due to travel to the Windy City. I won’t be online much over the next few days, but back to business as usual Tuesday. Have a Great Weekend!

Notable Flow

SMH – Bearish activity detected in Market Vectors Semiconductor with 7535 puts trading, or 22x the recent avg daily put volume in the name. Shares near $31.72 (-0.17) with ATMIV lifting by 1.62 point and 50% of todays put premium trading offer side. (Trade-Alert) 13:31

HCA – Bearish activity detected in HCA Holdings Inc with 11363 puts trading, or 13x the recent avg daily put volume in the name. Shares near $33.44 (0.39) with ATMIV lifting by 1.76 point and 95% of todays put premium trading offer side. (Trade-Alert) 12:31

DRC – Bullish flow detected in Dresser Rand Group Inc with 4905 calls trading, or 6x the recent avg daily call volume in the name. Shares near $54.48 (-0.49) with ATMIV lifting by 1.02 point and 55% of todays call premium trading offer side. (Trade-Alert) 12:01

High options volume is being seen in RIMM, EWH, CMCSA, NKE, APC, MT, DAL, COH, ETP, RTN

Movers
Symbol Last Change %Change StdDevs
CT 3.70 +0.57 +18.2% 8.16
CYTX 4.55 +0.69 +17.9% 2.94
MDRX 12.71 +1.83 +16.8% 10.52
SPMD 2.72 +0.32 +13.3% 2.39
REDF 3.87 +0.42 +12.2% 1.74
AUDC 2.60 +0.25 +10.6% 1.42
AZZ 38.44 +3.68 +10.6% 6.54 Post-Earnings
ADTN 17.28 -1.87 -9.8% 5.67
ROYL 3.93 -0.39 -9.1% 0.94
EDU 16.86 +1.31 +8.4% 2.30

Shakers (Implied volatility Movers)
Symbol IV[30d] IVChg IVChg% SkewAdjChg Last Change
PSEC 30.6% +11.8 +63.3% +10.4 $11.52 -0.03
NKE 20.8% -12.2 -37.0% -12.4 $95.35 -0.65 Post-Earnings
FINL 33.0% -17.6 -34.8% -17.4 $22.71 -0.04 Post-Earnings
MDRX 50.9% +12.9 +33.9% -2.0 $12.71 +1.83
RIMM 67.2% -27.8 -29.2% -25.7 $7.64 +0.50 Post-Earnings
ACN 18.9% -6.9 -26.7% -6.0 $70.20 +4.82 Post-Earnings
FMER 17.5% -6.0 -25.7% -4.5 $14.78 -0.18
JNK 5.0% -1.6 -24.3% -1.9 $40.35 +0.05
CNP 18.6% +3.3 +21.9% +3.0 $21.31 +0.01
WAG 18.1% -5.1 -21.8% -5.3 $36.30 -0.30 Post-Earnings

52-Week Highs
59 new highs: ACGL ACN AGP ARIA ARRY AZZ BANR BLMN BYI CCOI CHDN CIU CLMT CRL CVLT CYTX DFS DST EMB ENSG EPOC EXH FIVE GBDC GE HCA HNP HTH HYD IIJI IOSP JCOM KS LQD MDSO MMS MVG MWA N NPSP NYT PAC PCEF PDFS PKG RGLD ROIC SBAC SPNC SPSC SQI SYT TREX TYL UHS VASC WAG WPI XNPT

52-week Lows
13 new lows: ADTN ALE ASYS AVG BBRG BEBE BOOM ENPH MCF MKTS PGNX PNSN RNDY

Top Equity Blocks
5.79m NOK 2.61 -0.10 -3.9% FINRA-ADF 14:19:59 – Average Price Trade
3.00m MO 33.35 -0.55 -1.6% FINRA-ADF 10:09:51 – Burst
2.80m S 5.65 +0.05 +0.9% FINRA-ADF 13:40:28
2.00m SPY 144.65 -0.14 -0.1% FINRA-ADF 13:44:27 – Average Price Trade
2.00m CLWR 1.40 -0.08 -5.4% FINRA-ADF 13:38:58
1.49m JNK 40.36 +0.06 +0.1% FINRA-ADF 13:59:12
1.17m NOK 2.63 -0.04 -1.5% FINRA-ADF 12:32:51
1.10m EWZ 53.95 -0.89 -1.6% CHX (MIDWEST) 11:32:40 – Tied to Options
1.00m SPY 144.65 -0.44 -0.3% FINRA-ADF 14:17:58 – Average Price Trade
1.00m SPY 144.65 -0.91 -0.6% FINRA-ADF 11:47:13 – Average Price Trade

Tags: featured, market update, Sentiment

Category: Market Update