WhatsTrading.com Options Recap — 11/6/2012

| November 6, 2012 | 0 Comments More


Stock market averages are holding solid gains with most of the focus centered on the Presidential elections. The ultimate outcome remains uncertain and volumes are light, but some of the cyclical names like Boeing (BA), United Technologies (UTX) and H-P (HPQ) are powering the Dow Jones Industrial Average to a triple-digit gain. There doesn’t seem to be a specific catalyst for the rally, as the economic calendar holds no data today and there have been few earnings reports of broad market significance. The strength might simply be due to the fact that the lack of clarity about who runs the White House over the next few years will soon be cleared. For whatever reason, the Dow is now up 156 points and the NASDAQ has added 15.4 points.

Overall option volumes are light, but heavy ex-dividend activity is driving high call volume in a number of names including Pfizer (PFE), Wells Fargo (WFC) and Exxon Mobile (XOM). Total volume is 12.5 million calls and 4.9 million puts. Stripping out ex-dividend trading activity, only 5.7 million calls and 4.6 million puts traded on the day. Vringo (VRNG) has seen brisk trading today, and is now up a penny to $3.96, on headlines the company has been awarded a legal settlement. The stock was up 42.6 percent yesterday ahead of the news. Bearish trading has been seen in hospital companies Tennet Healthcare (THC) and HCA in front of the elections. However, Aetna (AET) has seen bullish flow. GM is seeing active buying in its Nov 27 calls. Devon Energy (DVN) is busy ahead of earnings and perhaps as part of a domestic energy play ahead of the elections. Calls on SPDR Financials (XLF) were busy yesterday and remain active again today. 181,000 calls and 28,000 puts traded on XLF. Meanwhile, CBOE Volatility Index (.VIX) is down 1.12 to 17.30 after jumping .83 to 18.42 the day before.

Notable Flow

Bullish flow detected in Darden Restaurants Inc with 6351 calls trading, or 9x the recent avg daily call volume in the name. Shares near $54.165 (1.155) with ATMIV lifting by 1.03 point and 54% of todays call premium trading offer side. (Trade-Alert) 14:01

HFC – Bearish activity detected in HollyFrontier Corporation with 9686 puts trading, or 8x the recent avg daily put volume in the name. Shares near $40.5 (1.58) with ATMIV lifting by 4.97 point and 72% of todays put premium trading offer side. (Trade-Alert) 14:11
MAKO – Bullish flow detected in MAKO Surgical Corp with 3076 calls trading, or 2x the recent avg daily call volume in the name. Shares near $15.75 (0.03) with ATMIV lifting by 2.24 point and 57% of todays call premium trading offer side. (Trade-Alert) 12:21

High options volume is being seen in PFE, XOM, WFC, MET, XLE, WAG, BP, ESRX, BA, VVUS

Movers

Symbol Last Change %Change StdDevs
SREV 5.10 -3.10 -37.8% 12.49 Post-Earnings
SYPR 4.44 -2.28 -33.9% 14.01 Post-Earnings
FN 12.85 +3.15 +32.5% 10.14
VVUS 11.27 -3.68 -24.6% 5.08 Post-Earnings
CDE 23.82 -6.55 -21.6% 8.32 Post-Earnings
BSFT 29.06 -7.73 -21.0% 6.83 Post-Earnings
MMYT 12.15 -3.05 -20.1% 5.78 Post-Earnings
ROSG 4.79 +0.80 +20.1% 5.75
CBM 9.76 -2.33 -19.3% 5.51 Post-Earnings
CSC 37.42 +5.96 +18.9% 15.54 Post-Earnings

Shakers (Implied volatility Movers)

Symbol IV[30d] IVChg IVChg% SkewAdjChg Last Change
MIPS 26.4% -41.4 -61.1% -43.2 $7.22 +0.20
FOSL 44.6% -31.8 -41.6% -33.7 $83.63 -10.47 Post-Earnings
CSC 28.1% -20.0 -41.6% -21.1 $37.42 +5.96 Post-Earnings
WTW 38.6% -26.3 -40.5% -22.3 $55.67 +8.19 Post-Earnings
JIVE 59.3% -32.0 -35.1% -34.5 $13.04 +1.84 Post-Earnings
BSFT 60.0% -31.6 -34.5% -41.4 $29.09 -7.70 Post-Earnings
XL 24.5% -11.4 -31.8% -10.3 $24.50 +0.28 Post-Earnings
SCCO 27.7% -11.3 -29.0% -10.9 $35.47 -0.28
EXPD 23.9% -9.6 -28.7% -8.3 $38.00 +0.88 Post-Earnings
KLIC 62.3% +12.5 +25.1% +12.7 $10.90 +0.67

52-Week Highs
137 new highs: ACET AFCE AFL AFSI ALJ ALK AMP AMRI AMWD AOL AON AOS ARRS ASR ATW BANR BAX BG BGFV BITA BK BLL BMS CAP CBE CCM CFNL CHS CNK COG CONN CPA CSC CTGX CVD CVLT CXW CYMI CZZ DBV DDS DFS DORM DVA DW ECL ECOL ENOC EOG EPP EVER EWH EXP EXR FBC FFIN FIS FLS FSTR FUN GIL GILT GLDD GPK GPX GVA HAE HBI HII HOFT HON HOV HRB IFF IFGL IFSIA INGR IR ITW K KMX LAMR LII LLL LMT LPL LYG MAS MDF MED MNI MPW MSI MVG MYGN MYL NGS NTI NTSP NX OAK ODFL OMX OTTR PAA PAC PCH PHO PIKE PLCE PSX PWR RCL RDEN RJF RLGY ROP SAH SATS SBAC SIRO SNA SSS SWM SXL TAO TDY TFX THO TREX TXI TYL UBS UNF WGO WIRE YHOO

52-week Lows
44 new lows: AES BBY BTH BV CERP CRDC CTIC ELOS ENDP ENVI EXC FLML FORM GAIA GST JO LLNW LOGI MDLZ MMYT NCTY NLY NS NTRI NXTM OCLR OPTR PGH PRGN PWE SCOK SGYP SIJ SKUL SREV STEC STRI THM THQI TNS TROX VPG VTUS ZIP

Top Equity Blocks
3.00m GEN 2.55 +0.02 +0.8% FINRA-ADF 12:13:37
2.00m F 11.44 +0.21 +1.9% FINRA-ADF 11:42:31 – Average Price Trade
1.86m IAU 16.67 +0.28 +1.7% FINRA-ADF 14:19:05 – Burst
1.50m MU 6.04 +0.20 +3.4% FINRA-ADF 14:04:11 – Burst
1.40m S 5.69 -0.06 -1.0% FINRA-ADF 11:56:42
1.10m F 11.47 +0.21 +1.9% FINRA-ADF 11:51:58 – Average Price Trade
1.10m XLF 16.18 +0.20 +1.3% FINRA-ADF 14:34:44 – Average Price Trade
1.00m CX 9.08 +0.03 +0.3% FINRA-ADF 12:21:58 LATAM
1.00m S 5.68 -0.07 -1.2% FINRA-ADF 11:53:32
1.00m MU 6.03 +0.17 +3.0% FINRA-ADF 10:48:42

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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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