WhatsTrading.com Options Recap — 11/12/2012

| November 12, 2012 | 0 Comments More


Market averages are flat heading into the final hour of trading. With no economic data or earnings of importance to guide the action, the news flow has been light. Overseas equity markets were narrowly mixed and the euro is flat at 1.2714 against the buck. Crude oil is trading down 43 cents to $85.64 and gold lost $3.5 to $1727.5. There’s just not much movement in the financial markets, the week after stock market averages suffered their biggest losses in five months. The Dow Jones Industrial average is flat. With 40 minutes left to trade, the NASDAQ is down 3 points. There’s not much volume due the Veteran’s Day holiday. The Treasury market is closed.

Lack of volatility, lack of volume. That tends to be the pattern. The high volume days in the options market this year are around the expirations and during the panic sell-offs. Today, the projected volume is 15 million contracts, which compares to average daily volume of 15.4 million during the past month. 7.7 million calls and 5.5 million puts traded, but stripping out ex-dividend activity in Microsoft (MSFT), Eli Lilly (LLY), and others, the volume is 5.8 million calls and 5.5 million puts.

Large put spreads were bought in the SPDR Homebuilders Trust (XHB) on the heels of earnings results from Beazer and DR Horton. BAC Jan 10 calls, which have 1.02 million in open interest and the most of any listed options today, have traded 225,600 contracts on the day. JC Penney (JCP) is still reeling in the wake of its earnings last week, down another $2.50 to $18.14. 92,000 puts and 41,000 calls traded on the retailer. Put spreads have also traded in the home improvement retailers Home Depot (HD) and Lowe’s (LOW). Meanwhile, CBOE Volatility Index (.VIX) sees a surprisingly big decline, down 1.67 to 16.94 and now well below the multi-month highs seen midweek last week.

Notable Flow
TIBX – Bullish flow detected in TIBCO Software with 8386 calls trading, or 6x the recent avg daily call volume in the name. Shares near $23.965 (-0.615) with ATMIV lifting by 1.02 point and 57% of todays call premium trading offer side. (Trade-Alert) 15:21

KMI – Bearish activity detected in Kinder Morgan Inc with 14403 puts trading, or 14x the recent avg daily put volume in the name. Shares near $32.63 (0.05) with ATMIV lifting by 1.10 point and 91% of todays put premium trading offer side. (Trade-Alert) 13:11
NIHD – Bullish flow detected in NII Holdings with 10875 calls trading, or 7x the recent avg daily call volume in the name. Shares near $5.7099 (-0.4201) with ATMIV lifting by 9.45 point and 59% of todays call premium trading offer side. (Trade-Alert) 13:01

High options volume is being seen in MSFT, LLY, JCP, XHB, HD, WMB, MRO, WFT, SBUX

Movers

Symbol Last Change %Change StdDevs
TIE 16.47 +4.90 +42.4% 18.81
STV 3.87 +0.88 +29.4% 17.47
BZH 13.65 -2.99 -18.0% 5.81 Post-Earnings
MYRX 2.75 +0.41 +17.5% 14.49
LFVN 2.45 -0.44 -15.2% 4.87
IQNT 3.02 -0.49 -14.1% 1.07
LODE 2.12 -0.34 -13.8% 2.97
JEF 16.24 +1.97 +13.8% 4.95
VOCS 16.75 +2.02 +13.7% 5.48
XIDE 2.73 -0.42 -13.3% 4.63 Pre-Earnings

Shakers (Implied volatility Movers)

Symbol IV[30d] IVChg IVChg% SkewAdjChg Last Change
TIE 11.8% -26.6 -69.3% +nan $16.47 +4.90
DTG 15.8% -17.1 -52.0% -4.7 $85.91 +1.91
GILD 31.4% -17.2 -35.5% +nan $72.39 +7.38
NKTR 77.8% -36.3 -31.8% +nan $7.10 -1.05
PAA 20.4% +4.7 +29.8% +nan $43.97 -1.53
PSSI 23.3% +5.0 +27.5% +nan $28.44 +0.00
JBLU 44.7% +8.7 +24.3% +nan $5.33 +0.02
DDD 61.6% +11.5 +23.1% +9.3 $42.26 -3.74
EBIX 66.2% +11.9 +22.0% +nan $16.52 -1.37
PBI 38.4% +6.8 +21.6% +5.3 $11.90 +0.00

52-Week Highs
28 new highs: ADT AGM BAP CRAY CSU CTB CXS EGOV FBC GILD GILT GPX HTA IMH MKL MYL PCP PDFS PIKE POST PZA SLF SPNC SSS TIE TSM TVL WRLS

52-week Lows
126 new lows: ACUR AEE AES AMSC ART ASYS ATSG AXAS BCOV BIG BPAX BPL BPT BTX BYD CCRN CECO CERP CHOP CPIX DCTH DD DOM DTSI EBR EBR/B ED EEQ ELP ENVI ESI ESIO ET EXC EXPR FMD FXEN GDP GES GEVO GGS GIFI GNE GORO GRPN GST GSVC GTAT HPQ HSII INTC INTL IQNT JCP KTOS LLNW LNCO LOGI MBLX MCF MCHP MCP MEA MHR MIND MNTA MSO MTDR NLST NOG NRP NS NSH NTAP NVTL NWN OXF PACB PAL PBI PBT PBW PER PFMT PFPT PGH PGNX PICO PKD PNX PRGN PSE PST PWE RBCN RMTI RNDY RPXC RRD RSYS SBLK SDLP SDR SDT SE SGYP SNE SREV STRA STSI SWS SZYM TAN TE TEA TFSL TNP TSL TSPT VLCCF VLY VOC VTUS WHX WRE WWAV

Top Equity Blocks
2.00m SPY 138.27 +0.23 +0.2% FINRA-ADF 14:56:20 – Average Price Trade
1.46m FEZ 30.93 +0.01 +0.0% FINRA-ADF 11:36:00 – Burst
1.44m LORL 80.70 +0.88 +1.1% CHX (MIDWEST) 14:47:39 – Tied to Options
1.43m MU 5.59 -0.03 -0.5% FINRA-ADF 15:05:35
1.36m SPY 138.52 +0.56 +0.4% FINRA-ADF 13:15:05 – Out of Sequence
1.36m SPY 138.52 +0.58 +0.4% FINRA-ADF 13:14:30 – Out of Sequence
1.00m QQQ 63.46 -0.00 -0.0% FINRA-ADF 14:43:23
1.00m SPY 138.27 +0.36 +0.3% FINRA-ADF 10:07:19 – Average Price Trade
1.00m SPY 138.27 +0.26 +0.2% FINRA-ADF 14:53:51 – Average Price Trade
1.00m VTI 70.82 +0.05 +0.1% FINRA-ADF 15:16:30

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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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