WhatsTrading.com Options Recap — 11/16/2012

| November 16, 2012 | 0 Comments More


Stock market averages slipped early on disappointing economic and earnings news, but have since rebounded and are little changed heading into the final hour of trading on expiration Friday. A report released this morning showed Industrial Production falling .4 percent in October. A .1 percent increase was expected. Meanwhile, Dell shares lost 6.7 percent after the computer maker’s revenues fell short of Street forecasts. H-P, which reports on 11/20, is down 2.5 percent and the Dow’s biggest loser on the heels of Dell’s results. However, while the bearish underlying tone continued in morning action, stock market averages found some support midday from headlines that House Speaker John Boehner expressed optimism for a resolution to the fiscal cliff challenges facing the country heading into 2013. Some of the commodities strengthened as well. Crude oil is up $1.08 to $86.95 and gold lost $1 to $1712.8. Meanwhile, the Dow Jones Industrial Average clings to a 10 point gain and is 80 points from session lows. The NASDAQ is up 8.5 points.

Trading in the options market is very busy due to the expiration and the bearish underlying sentiment that has developed over the past couple of weeks. With a little more than an hour to trade, the projected volume is 22 million contracts. 9 million calls and 9.2 million puts traded across the exchanges so far. Expiring November 135 and 136 puts on the SPYders are the most actives on the day. Meanwhile, some of the biggest trades are rolls of massive blocks of puts in the PowerShares QQQ (QQQ) and the iShares Emerging Markets Fund (EEM) from the November term to the Weeklys that expire in 11/30. Some of the casino names, like MGM, are seeing higher options activity after PENN rallied 30 percent on news of a company break-up into two separate units. Yet, nothing really compares to the heavy volume seen in the November options on Apple Computer (AAPL). While shareholders watched the stock dip back towards $500 for the first time since February, a total of 1.6 million contracts traded in Apple today. Shares are now down $1.16 to $524.46 and 58 percent of the flow, or about 805K contracts of that volume, is in the expiring November options. Lastly, VIX is down 1.25 to 16.74 ahead of the expiration of VIX options next week. As of today, with VIX below 17, a whopping 2.1 million November calls on the index are out-of-the-money.

Notable Flow

KCG – Bullish flow detected in Knight Trading Group Inc with 6843 calls trading, or 8x the recent avg daily call volume in the name. Shares near $2.53 (0.17) with ATMIV lifting by 15.81 point and 50% of todays call premium trading offer side. (Trade-Alert) 15:01

WFR – Bullish flow detected in MEMC Electronic Materials Inc with 19924 calls trading, or 6x the recent avg daily call volume in the name. Shares near $2.19 (-0.13) with ATMIV lifting by 2.42 point and 92% of todays call premium trading offer side. (Trade-Alert) 13:41

BKD – Bullish flow detected in Brookdale Senior Living Inc with 2923 calls trading, or 14x the recent avg daily call volume in the name. Shares near $23.52 (1.94) with ATMIV lifting by 1.70 point and 71% of todays call premium trading offer side. (Trade-Alert) 13:01

High options volume is being seen in EEM, EWZ, DELL, LNG, MGM, SINA, BBY, AMRN, ITUB, TGT

Movers

Symbol Last Change %Change StdDevs
DVAX 2.41 -2.22 -47.9% 11.42
PENN 48.72 +11.11 +29.5% 26.63
SHF 43.77 +9.85 +29.0% 3.23
SCMR 2.72 -0.86 -24.0% 2.25
SHLD 46.72 -11.76 -20.1% 6.48 Post-Earnings
OSIS 64.09 +9.20 +16.8% 2.11
ASCA 19.64 +2.79 +16.6% 12.73
OMX 9.41 +1.19 +14.4% 4.23
SINA 45.60 -7.50 -14.1% 5.32 Post-Earnings
VELT 3.85 -0.52 -11.9% 1.16

Shakers (Implied volatility Movers)

Symbol IV[30d] IVChg IVChg% SkewAdjChg Last Change
DELL 32.8% -16.2 -33.1% -17.1 $8.87 -0.69 Post-Earnings
MRVL 41.9% -18.1 -30.2% -17.3 $7.38 -0.03 Post-Earnings
GPS 27.5% -11.8 -30.0% -11.3 $33.49 +0.23 Post-Earnings
FL 23.8% -8.5 -26.2% -8.5 $33.20 +1.35 Post-Earnings
GNTX 43.5% +9.0 +26.0% +7.4 $16.22 -0.18
ADSK 28.8% -8.9 -23.7% -9.7 $31.46 +0.96 Post-Earnings
ZIP 50.1% +9.3 +22.9% +nan $6.86 -0.14
ARUN 45.3% -12.4 -21.5% -15.4 $18.93 -0.53 Post-Earnings
SZYM 66.5% +11.4 +20.8% +2.7 $7.22 -0.58
NXY 36.3% -9.3 -20.3% -5.1 $25.75 +0.57

52-Week Highs
15 new highs: AGM BOTA CHMT FNGN HFC HRL INSM KT MIDD OMX PENN PNK SHF SIRO WX

52-week Lows
240 new lows: .GVZ .SRO ABFS ACTV AFFX AKS AMAT AMD AMKR AMSC ANGO APA ARC ART ASTE ASTM ASYS ATHX ATI ATML ATR AU AVA AVEO AVP AXAS B BBBY BBY BCRX BEBE BGCP BIDU BIG BLDP BORN BRY BTN BUSE CALD CASY CATM CBAK CBR CCJ CCRN CDXS CHH CLC CLMS CMVT CNSL COWN CPIX CSH CSX CWT CY CYTR DBD DD DELL DHT DIOD DM DNN DRWI DRYS DUF DVAX DVN EBR EBR/B ECT ELON ETR EXC EZPW FDML FFBC FMD FNFG FNSR FOE FORM FRM FSL FTE FXEN GAIA GCO GEVO GFI GGS GLF GLUU GMLP GSIG GTAT HAYN HE HHS HMY HPQ HSII HTSI IMN INFN INTC INTL INTX IPHI IRBT IRDM IRF IRWD ISS IVAC IVC IXYS JAKK JASO JCP JW/A KEM KOPN KTOS LPR MATW MCD MCHP MCP MCRL MCS MELA MFLX MG MGIC MHR MIND MNTA MOBI MRVL MSB MTOR MTSN MVO NBTB NCI NCTY NFX NOR NSC NVDA NVTL NWN OCZ ONCY ONE ONNN OSUR OXY P PACR PANW PBW PER PES PFSW PGH PKE PKX PNY PRGN PST QLGC QUIK RBCN REE RELL REMX RIC RMTI RNDY RNO RNWK RSH SCHS SCMR SDT SFE SFY SKUL SOCL SOL SPR STEC SXT SZYM TAN TDW TE TFSL THM TRQ TSL TSRX TTMI TW TWGP TXCC TYC TYO UAMY UMPQ URA USD USM UTSI VE VELT VICR VLTR VOC VOD VPG VRNM VRNT WABC WGL WHX WHZ WIN WLT WRE XRX YGE YPF ZEP ZUMZ

Top Equity Blocks
4.56m EWH 18.39 -0.05 -0.3% FINRA-ADF 10:38:57 – Out of Sequence
4.00m SPY 135.75 +0.37 +0.3% FINRA-ADF 13:43:19 – Average Price Trade
4.00m SPY 135.75 +0.27 +0.2% FINRA-ADF 13:42:02 – Average Price Trade
3.45m NWSA 23.20 +0.08 +0.3% FINRA-ADF 14:00:38 – Burst
3.15m SPY 135.75 +0.48 +0.4% FINRA-ADF 14:02:49 – Average Price Trade
3.15m SPY 135.75 +0.37 +0.3% FINRA-ADF 13:44:05 – Average Price Trade
2.05m XLY 44.76 +0.06 +0.1% FINRA-ADF 10:29:06 – Derivatively Priced
2.00m SPY 135.74 +0.11 +0.1% FINRA-ADF 14:41:42 – Average Price Trade
2.00m IWM 76.83 +0.08 +0.1% FINRA-ADF 11:51:23 – Average Price Trade
1.79m LNG 14.33 -0.10 -0.7% CHX (MIDWEST) 09:54:50 – Tied to Options

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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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