WhatsTrading.com Options Recap — 11/14/2012

| November 14, 2012 | 0 Comments More


Stock market averages were modestly lower at midday and the decline gathered additional momentum through a press conference from President Obama and the release of FOMC minutes this afternoon. Although Cisco (CSCO), Staples (SPLS), and Abercrombie (ANF) scored solid morning gains with help from earnings results, the economic data disappointed. Retail Sales were negatively impacted by Hurricane Sandy and dropped .3 percent in October. A .2 percent decline was expected. PPI saw a surprise decline of .2 percent. A .1 percent increase was expected. The data adds to concerns about the “fiscal cliff” and tough rhetoric from President Obama to press reporters about taxing the rich and the risks to the middle class from letting tax cuts expire seemed to add to the angst. The FOMC minutes didn’t seem to include any significant changes to Fed policy, but officials are actively discussing adding policy targets to define future actions – like leave policy unchanged until unemployment reaches XX level. Uncertainty reigns. At the same time, worrisome events in the Middle East are driving crude oil prices higher after Israel launched violent attacks on Hamas leaders. Crude is up 86 cents to $86.24 and gold gained $2.4 to $1727.2. Overall, it’s a very busy news day and, outside of a handful of positive earnings surprises, the headlines offered few reasons to bid stocks higher. Instead, the market is selling off and the Dow Jones Industrial Average is down 146 points. The NASDAQ dropped 30.

Overall options volumes are busy and likely to remain active through the rest of the week and the November expiration. About 7.5 million puts and 7.1 million calls traded across the exchanges. With forty five minutes left to trade, the projected volume is about 17 million contracts and well above the recent daily average of 15.4 million. Cisco sees a flurry of activity on the heels of its earnings. 315,000 contracts traded. ANF also sees heavy post-earnings flow. Facebook (FB) is up $2.59 to $22.59 now that the lockup shares have become tradable. An impressive 710,000 options traded in Facebook today. Some of the dividend-paying names are taking a hit, and put buyers surfaced in one of the REIT ETFs (ticker REM) on the view that favorable tax treatments for dividends will be abolished under the Obama administration. Meanwhile, CBOE Volatility Index (.VIX) is up .93 to 17.58 and Jan calls were among the most actives this morning after a Jan 25 – 35 call spread traded on the volatility index for 97 cents this morning, about 60000X. It now fetches $1.10.

Notable Flow
CVS – Bearish activity detected in CVS Caremark Corporation with 23138 puts trading, or 3x the recent avg daily put volume in the name. Shares near $45.79 (-0.44) with ATMIV lifting by 1.24 point and 59% of todays put premium trading offer side. (Trade-Alert) 12:51

CCJ – Bearish activity detected in Cameco Corporation with 5053 puts trading, or 6x the recent avg daily put volume in the name. Shares near $16.99 (-0.36) with ATMIV lifting by 1.02 point and 54% of todays put premium trading offer side. (Trade-Alert) 12:31

TIBX – Bullish flow detected in TIBCO Software with 3564 calls trading, or 2x the recent avg daily call volume in the name. Shares near $24.67 (0.58) with ATMIV lifting by 2.49 point and 94% of todays call premium trading offer side. (Trade-Alert) 12:01

High options volume is being seen in FB, CSCO, IYR, .RUT, BIDU, ANF, KRE, ETFC, NTAP, HTZ

Movers

Symbol Last Change %Change StdDevs
TEA 15.44 +5.31 +52.4% 17.18
ANF 41.22 +10.04 +32.2% 11.90 Post-Earnings
SGYP 3.84 +0.71 +22.7% 6.20
ROYL 3.41 +0.61 +21.8% 6.71 Post-Earnings
IAG 12.01 -2.85 -19.2% 7.98 Post-Earnings
ORCC 2.20 -0.50 -18.5% 9.43
FRO 3.78 +0.56 +17.4% 9.49
TSL 2.74 -0.51 -15.7% 3.69
AVEO 6.25 -0.97 -13.4% 4.26
LXU 33.24 -4.90 -12.8% 4.52

Shakers (Implied volatility Movers)

Symbol IV[30d] IVChg IVChg% SkewAdjChg Last Change
DTG 6.3% -15.6 -71.3% +nan $87.09 +1.89
GORO 73.8% +24.2 +48.9% +26.1 $12.96 -1.77
CSCO 23.4% -20.1 -46.2% -3.9 $17.65 +0.80 Post-Earnings
ANF 47.0% -35.3 -42.9% +nan $41.21 +10.03 Post-Earnings
PBI 35.9% +10.7 +42.3% +nan $10.90 -0.40
HCP 20.2% +5.4 +36.2% +5.0 $43.85 -0.90
SPLS 36.0% -19.7 -35.4% -3.8 $11.55 +0.30 Post-Earnings
IRDM 71.4% +17.1 +31.5% +nan $5.98 -0.24
TYC 24.9% -10.9 -30.6% -1.7 $26.87 -0.46 Post-Earnings
ETE 20.6% +4.5 +28.0% +3.3 $43.19 -1.94

52-Week Highs
19 new highs: AON ARMH BAX CPB DUSA FBC GILT GPK HNP HYD INSM KT LYG MDF MUB PZA STV WX YHOO

52-week Lows
208 new lows: .GVZ .SRO ABFS ACTG ACUR ADM AEE AES AI AKS AMD AMKR AMSC AMSWA APA ARC ARR ART ATR AVA AVEO AVL AVP AZK BCOV BEBE BGCP BIDU BIG BKI BLKB BRY BSBR BTH BTX BUSE BWP BYD CALD CBR CCC CECO CERP CETV CLC CLMS CMO CMVT CSX CVU CY CYS CYTR CZR DANG DCTH DD DHT DNN DVN EBR/B EEQ EGLE ELON ELOS ENPH ENVI EOX ESI ESIO EXC FDML FFBC FMD FOE FSL FXEN GDP GIFI GLPW GNE GORO GST GSVC HTS HTSI IMMU IMN IMUC INOD INTC IPHI IQNT IRBT IRDM ISS IVC JCP JW/A KEM KWK LEDS LOGI MBLX MCF MCHP MCP MCS MDLZ MDU MELA MFLX MGI MNTA MOBI MSO MWW NAT NCTY NFX NIHD NLST NOG NOR NRP NSC NVDA NWN NYMT NYX OCLR ONCY OTT OXF OXY P PAL PBI PBW PC PES PFMT PICO PKX PLAB PMTI PNX PRGN PSE QLGC QLTY QRM QUIK RAD RBCN REMX REN RMTI RNO RRD RSYS SB SCMR SDR SEP SMLP SNE SONS SREV SSN STEC SWS SZYM TAN TDW TE TEA TFSL THI TLAB TNK TNP TOO TSL TW TWGP URA URRE USD USEG USMO VGR VICR VLY VOD VRNT WABC WBMD WCG WGL WIN WMC WPZ WRE WWAV XTEX YPF ZUMZ

Top Equity Blocks
7.50m CIM 2.70 FINRA-ADF 10:54:34 SUB5FINS
4.10m CIM 2.70 FINRA-ADF 11:18:47 SUB5FINS
4.10m CIM 2.70 FINRA-ADF 11:17:58 SUB5FINS
3.26m FXI 35.95 +0.05 +0.1% FINRA-ADF 14:01:53 – Average Price Trade
3.00m QQQ 62.97 -0.15 -0.2% FINRA-ADF 13:51:14
2.83m HAL 30.20 -0.19 -0.6% FINRA-ADF 12:07:17 – Burst
2.83m RSX 26.47 -0.21 -0.8% FINRA-ADF 12:27:23 – Average Price Trade
2.66m EMLC 26.42 FINRA-ADF 15:21:30 – Burst
2.51m EZU 29.96 +0.14 +0.5% FINRA-ADF 12:27:04 – Average Price Trade
2.44m FB 22.28 +2.42 +12.2% FINRA-ADF 14:52:09 – Derivatively Priced

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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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