WhatsTrading.com Options Recap — 11/07/2012

| November 7, 2012 | 0 Comments More


Stock market averages fell sharply across Europe and America Wednesday. 2012 elections are in the history books and now investors are focused on the fiscal challenges facing leaders in Washington. Volatility across Europe’s equity markets, including a 2.5 percent drop in Italy’s MIB Index adds to the jitters about budget deficits and the impact on future economic growth, corporate revenues, and earnings. Meanwhile, crude oil has been selling off today and is down $4 per barrel. Gold has seen seesaw action and is now up $5.5 to $1720.5. Stocks wavered at the open and the selling gathered momentum through morning action. The Dow was down 300 points at midday. Trading has been choppy since then and the industrial are now sporting a 283-point loss. The NASDAQ dropped 69 with help from a four percent drop in Apple (AAPL).

Overall option volumes are very heavy and reflect the bearish underlying tone. Projected volume is more than 20 million contracts. 8.4 million calls and 9.1 million puts traded across the exchanges so far. SPY Nov 140 puts are the most actives. More than 321K on the tape so far. SPY Nov 139 puts, IWM 80 puts and SPY Weekly 141 puts are the next most actives. The top equity options trades are 30000-contract blocks of Groupon May 4 and April 5 puts. Volume in Qualcomm (QCOM) is picking up ahead of earnings. 122,000 contracts traded on the chipmaker. Some of the sector ETFS, like XLE, XLF, and IYR, are also seeing high volume today. Meanwhile, CBOE Volatility Index (.VIX) is up 1.04 to 18.62, but not consistent with any type of panic so far.

Notable Flow

JNK – Bearish activity detected in SPDR Barclays High Yield Bond with 5341 puts trading, or 5x the recent avg daily put volume in the name. Shares near $40.09 (-0.16) with ATMIV lifting by 1.03 point and 71% of todays put premium trading offer side. (Trade-Alert) 14:11

CBS – Bullish flow detected in CBS Corp with 17260 calls trading, or 4x the recent avg daily call volume in the name. Shares near $34.1275 (-0.3025) with ATMIV lifting by 1.13 point and 95% of todays call premium trading offer side. (Trade-Alert) 14:01

JDSU – Bullish flow detected in JDS Uniphase Corporation with 6968 calls trading, or 3x the recent avg daily call volume in the name. Shares near $11.14 (0.51) with ATMIV lifting by 1.71 point and 52% of todays call premium trading offer side. (Trade-Alert) 13:21

High options volume is being seen in IWM, QCOM, T, XLE, TLT, NLY, VZ, IYR, GRPN, SDS

Movers

Symbol Last Change %Change StdDevs
QLTY 5.74 -2.86 -33.3% 32.11 Post-Earnings
JRCC 3.37 -1.33 -28.3% 3.32 Post-Earnings
PLXS 20.28 -7.68 -27.5% 10.08
VHC 32.93 +6.64 +25.3% 8.27
STEC 4.46 -1.17 -20.8% 11.38 Post-Earnings
SRT 3.67 +0.60 +19.7% 11.82 Post-Earnings
ADES 14.23 -3.50 -19.7% 5.50 Post-Earnings
PQ 4.98 -1.14 -18.6% 8.47 Post-Earnings
RBCN 7.41 -1.62 -17.9% 9.64 Post-Earnings
FRM 4.06 -0.87 -17.6% 6.12 Post-Earnings

Shakers (Implied volatility Movers)

Symbol IV[30d] IVChg IVChg% SkewAdjChg Last Change
VHC 72.8% -104.5 -58.9% -88.0 $32.84 +6.55
SODA 48.4% -36.8 -43.2% -35.1 $35.91 +1.75 Post-Earnings
THC 34.9% -26.0 -42.7% -22.8 $27.43 +2.48 Post-Earnings
HCA 34.1% -25.4 -42.7% -18.3 $34.13 +3.20
WLP 25.8% -15.7 -37.9% -16.3 $58.12 -3.08 Post-Earnings
DVN 28.2% -16.6 -37.0% -6.7 $55.50 -4.12 Post-Earnings
RAX 36.7% -21.4 -36.8% -23.6 $62.94 -3.14 Post-Earnings
CYH 40.0% -23.3 -36.8% -21.9 $30.48 +1.81
CTSH 26.8% -15.1 -36.0% -14.8 $67.18 -0.17 Post-Earnings
LAMR 27.7% -15.3 -35.5% +nan $41.10 +1.43 Post-Earnings

52-Week Highs
41 new highs: BGFV BITA BLL BOND CBL CCI CCM CNK CPA CVD CYH DDS EHTH FLS FNGN GGC GILT HII HOV LAMR LEN LPL MD MED MSG OGE PAA PIKE PWR PZA RGC SBAC SRT SXL TDY THC TMH TREX UHS WRLS YHOO

52-week Lows
134 new lows: .SRO ABMD ACW ADES AES AFFX AMD ANGO ANH APOL APRI ARC ARCO AT AVEO BERY BLKB BLOX BTH BV BWP CCC CEDC CERP CLMS CMO CORT CPSL CRDC CROX CTIC CWT CZR DHT DNN DUF EBR EBR/B ED ELOS ENDP ENVI EOX ESI ESIO ETP EXC EZPW FLML FTE GAIA GDP GIFI GLUU GSIG GST GSVC HTS HZNP IMN IMUC INTC IQNT IVAC KEG KWK LLNW LOGI MCP MNTA MPO MTDR MWW NLY NS NSC NSH NTLS NWN NXTM NYX OCLR OPTR OXF OXGN PBI PBT PEGA PFPT PGH PLXS PMFG PRGN PSE PWE QLGC QLTY QRM RBCN RELL RMTI RRD RSYS SBLK SCOK SDT SEP SFY SGG SGYP SHZ SKUL SOMX SREV STEC STRI THM THQI TLAB TROX TWGP UAM UAMY URA USEG USM VOC VOXX VPG VTUS WBSN WFT ZAZA ZIP

Top Equity Blocks
2.90m GEN 2.52 -0.01 -0.6% FINRA-ADF 14:32:22
2.70m GEN 2.51 -0.04 -1.6% FINRA-ADF 14:10:31
2.70m GEN 2.50 -0.05 -2.0% FINRA-ADF 12:47:59
2.62m MU 5.81 -0.28 -4.6% FINRA-ADF 15:09:30
2.19m ALTR 31.00 -0.84 -2.6% FINRA-ADF 11:14:59 – Burst
2.03m XRX 6.41 -0.26 -3.9% FINRA-ADF 13:53:42 – Burst ANUR
2.00m SPY 143.12 -2.97 -2.0% FINRA-ADF 14:42:15 – Average Price Trade
1.80m SIRI 2.72 -0.09 -3.2% FINRA-ADF 10:28:09
1.71m GRPN 3.89 -0.08 -2.0% CHX (MIDWEST) 09:52:14 – Tied to Options SOCIAL
1.50m GEN 2.52 -0.04 -1.4% CHX (MIDWEST) 14:21:29

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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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