WhatsTrading.com Options Recap — 11/13/2012

| November 13, 2012 | 0 Comments More


Another seesaw session has left stock market averages sporting modest losses late-Tuesday. Microsoft (MSFT) is down 3.7 percent, the biggest loser in the Dow Jones Industrial Average and also weighing in the NASDAQ, after the company’s executive in charge of Windows announced that he is leaving the company after 20 years on the job. However, Home Depot (HD) is helping the Dow in the wake of its earnings report. A handful of other retailers, including Dick’s (DKS) and Saks (SKS), ticked higher on earnings as well. However, the pace of profit reports is beginning to slow and now players wait for tomorrow’s Retail Sales numbers as the first substantial economic stat of the week. Elsewhere, European equity markets saw notable strength late in the day and the euro is flat at 1.2715 against the dollar on speculation of a Spanish bailout. However, Asia’s equity markets closed broadly lower after data showed Japan’s Industrial Production falling 4.1 percent. The action in the commodities markets also portends economic weakness. Crude oil is down 30 cents to $85.25 and gold lost $4.5 to $1726.50. On Wall Street, the Dow Jones Industrial Average is now down 28 points and more than 110 from session highs. The NASDAQ dropped 14.5 points.

Trading in the options market is running at a relatively slow pace. Projected volume is 14.4 million contracts. With 40 minutes left to trade, 6.8 million calls and 6.1 million puts changed hands. Some of the big blocks so far today are rolls of November contracts ahead of this week’s expiration to later terms. For instance, a block of 18000 RIMM Nov 7 calls probably rolls to a similar position in the Dec 7 calls. Cisco (CSCO) sees high volume ahead of its earnings, due out after the close. The stock is up 4 cents to $16.89 and 285,000 options traded on the networking company. Microsoft has seen a flurry of activity in both puts and calls on news of the management shakeup. Facebook (FB) Nov 19 puts have traded more than 54,000 contracts, with some players possibly liquidating positions on diminishing worries about the impact of the post-IPO lockup expiration. JCP, Macy’s (M), and Home Depot are active in the retailing sector. Meanwhile, CBOE Volatility Index (.VIX) is coming off session lows and down just .04 to 16.64. Trading is very active in the VIX pit. 567,000 calls and 139,000 puts so far.

Notable Flow
MBI – Bearish activity detected in MBIA Inc with 20279 puts trading, or 5x the recent avg daily put volume in the name. Shares near $7.445 (-0.965) with ATMIV lifting by 32.42 point and 56% of todays put premium trading offer side. (Trade-Alert) 14:51
LVLT – Bullish flow detected in Level 3 Communications Inc with 6563 calls trading, or 7x the recent avg daily call volume in the name. Shares near $19.23 (0) with ATMIV lifting by 1.29 point and 65% of todays call premium trading offer side. (Trade-Alert) 13:41

PWER – Bullish flow detected in Power One Inc with 3233 calls trading, or 5x the recent avg daily call volume in the name. Shares near $4.025 (-0.065) with ATMIV lifting by 4.36 point and 82% of todays call premium trading offer side. (Trade-Alert) 13:01

High options volume is being seen in MSFT, CSCO, RIMM, PCS, WFT, HD, XOP, NLY, VALE, ANF

Movers

Symbol Last Change %Change StdDevs
GBX 16.64 +2.69 +19.3% 3.59
TROX 15.20 -3.52 -18.8% 6.39 Post-Earnings
MBI 6.89 -1.52 -18.1% 6.65
AKS 4.51 -0.94 -17.3% 4.51
ARII 30.86 +4.38 +16.5% 6.06
WFT 9.16 -1.72 -15.8% 6.87 Post-Earnings
ACM 18.78 -2.98 -13.7% 10.73 Post-Earnings
DMND 20.15 +2.30 +12.9% 8.05
REE 3.29 -0.47 -12.5% 4.41
DVAX 4.70 +0.52 +12.3% 3.97

Shakers (Implied volatility Movers)

Symbol IV[30d] IVChg IVChg% SkewAdjChg Last Change
DMND 118.1% +50.7 +75.3% +41.8 $20.19 +2.34
MBI 100.2% +37.8 +60.4% +27.2 $6.93 -1.48
TIE 14.8% +4.4 +41.9% +nan $16.56 +0.06
PBI 40.0% +11.7 +41.1% +nan $11.70 -0.22
KORS 46.2% -29.9 -39.3% -28.0 $50.97 +0.39 Post-Earnings
HOLX 30.8% -18.5 -37.5% -17.9 $20.12 -0.27 Post-Earnings
DKS 27.1% -16.2 -37.4% -12.7 $51.06 +2.36 Post-Earnings
TJX 23.6% -10.4 -30.7% -8.9 $42.07 +1.10 Post-Earnings
JEC 25.7% -10.3 -28.7% -10.2 $38.98 -0.31 Post-Earnings
SKS 34.3% -13.2 -27.8% -12.1 $9.94 +0.06 Post-Earnings

52-Week Highs
30 new highs: AHS ALK AON BOND CPB EFX EXP FBC FBR FNF GILD GILT GPK HD HTA HTH INSM LYG MAIN MDF MKL NTI POST PZA SSS STAG TVL WRLS YHOO ZLC

52-week Lows
186 new lows: .SRO ABFS ACUR ADM AEE AES AMSC ANH APA ARC ARCO ART ASYS ATSG ATVI AVA AVP AXAS BCOV BEBE BGCP BIDU BIDZ BIG BKI BPT BTX BUSE BYD CECO CEDC CERP CHOP CLMS CMO CMTL CMVT CNDO CPIX CRDC CY CYS DCTH DD DHT DOM DTSI DUF DVN EBR EBR/B ED EEQ ELOS ENPH EOX ESI ESIO EXC EXPR EZPW FMD FORM FRM FSL FSYS FTE FTNT GDP GES GEVO GGS GLPW GLUU GNE GORO GST GTAT HPQ HTS IMN IMUC INTC INTL IPCC IQNT IRBT JCP JO LNCO LOGI LPLA MBI MBLX MCF MCHP MFLX MGI MIND MNTA MSO MTDR NCTY NFX NIHD NLST NLY NOG NRP NSC NTAP NTRI OCLR OXF OXY PACB PAL PBI PBT PBW PER PES PFMT PFPT PGH PGNX PICO PKD PNX PRGN PSE PST PWE QLGC QLIK QLTY QRM REN RPXC RRD SB SBLK SCMR SCOK SDR SDT SE SEP SKUL SMLP SONS SSN STEC STSI SWSH SYNC SZYM TAN TAT TE TLAB TNP TRNX TROX TSL TSPT TYO UAM URA URRE USD USEG VLCCF VLY VOC VOD VRNT VTUS WCG WFT WGL WHZ WIN WPZ WWAV YPF

Top Equity Blocks
4.81m HT 4.20 -0.26 -5.8% FINRA-ADF 12:42:18 – Burst
4.59m RSG 26.80 +0.05 +0.2% FINRA-ADF 13:56:08
4.54m ALU 1.08 -0.05 -4.4% FINRA-ADF 14:45:21
3.50m RSG 26.80 +0.05 +0.2% FINRA-ADF 12:14:47 – Burst
3.00m DLPH 32.20 -0.24 -0.7% FINRA-ADF 14:13:35 – Out of Sequence
2.00m RSG 26.80 +0.05 +0.2% FINRA-ADF 13:55:43
1.99m FB 19.83 -0.23 -1.1% FINRA-ADF 11:37:45 – Derivatively Priced
1.98m FB 19.98 -0.06 -0.3% FINRA-ADF 15:27:43 – Derivatively Priced
1.61m GEN 2.36 -0.04 -1.9% FINRA-ADF 14:59:40
1.37m SD 5.51 +0.12 +2.2% FINRA-ADF 12:57:30

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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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