WhatsTrading.com Options Recap — 11/19/2012

| November 19, 2012 | 0 Comments More


Bullish momentum from Friday continued Monday morning and better-than-expected housing numbers added fuel to the fire. A report released this morning showed Existing Home Sales up to a 4.79 million annual rate for October, from 4.69 million the month before and better than the 4.7 million that had been expected by economists. At the same time, NAHB Homebuilder Sentiment Index for November rose to a six-year high of 46, from 41 and four points than was expected. Lowe’s (LOW) is up 6 percent on earnings and chipmaker Rambus (RMBS) rallied 10 percent on an analyst upgrade. Crude oil was up $2.24 to $89.36 and gold gained $18.3 to $1,733. Stocks were broadly higher across most of Asia and Europe’s equity markets as well. On Wall Street, the Dow Jones Industrial Average, which finished higher Friday on hopes the economy isn’t ready to drive off the fiscal cliff, is up another 180 points. The NASDAQ gained 53.

Trading in the options market reflects the big shift in investor sentiment. Projected volume is a bit light at 15.3 million contracts. However, with about an hour left to trade, 7.5 million calls and 5.3 million puts traded across the exchanges. The most actives are Dec 24 calls, Feb 22 calls and Jan 18 puts on the CBOE Volatility Index (.VIX). VIX is down 1.02 to 15.39 and one investor is apparently rolling a strangle position from the Nov 18 puts – Dec 24 calls to a new long strangle in the Jan 18 puts and Feb 22 calls, 110000X on the day. Corning (GLW) Jan 15 calls are the most actively traded equity options contract, after one player apparently bought-to-close a 62000-lot in morning trading. RIMM is rallying and options volume is 2X the daily average, as chatter surfaced in the Blackberry-maker Monday morning. Urban Outfitters (URBN) and Qihoo (QIHU) are seeing increased options activity ahead of earnings. Lastly, some of the airliners – most notably LUV and DAL – saw bearish trading to start the week.

Notable Flow

MDT – Bullish flow detected in Medtronic (MDT), with 10045 calls trading, or 5x the recent avg daily call volume in the name. Shares near $41.61 (0.51) with ATMIV lifting by 1.07 point and 52% of todays call premium trading offer side. (Trade-Alert) 14:41

AGO – Bullish flow detected in Assured Guaranty Municipal Holdings Inc with 15336 calls trading, or 3x the recent avg daily call volume in the name. Shares near $12.8 (0.27) with ATMIV lifting by 1.49 point and 55% of todays call premium trading offer side. (Trade-Alert) 14:21

Z – Bullish flow detected in Zillow Inc with 5257 calls trading, or 5x the recent avg daily call volume in the name. Shares near $24.84 (0.82) with ATMIV lifting by 1.74 point and 95% of todays call premium trading offer side. (Trade-Alert) 13:21

High options volume is being seen in .VIX, PG, RIMM, GLW, TEA, ALXA, CRM, URBN, HOT, EA

Movers

Symbol Last Change %Change StdDevs
BMTI 7.34 +3.19 +76.9% 28.54
LRN 17.24 -3.21 -15.7% 8.32
UVXY 23.13 -4.24 -15.5% 1.84
AVNR 2.56 +0.33 +14.6% 4.56
BTX 3.48 +0.43 +14.3% 5.18
EBR/B 4.64 -0.77 -14.2% 4.51
GIFI 23.06 +2.83 +14.0% 4.74
EBR 3.82 -0.61 -13.8% 4.57
ACTG 20.34 -3.10 -13.2% 3.89
LGND 18.85 +2.18 +13.1% 3.79

Shakers (Implied volatility Movers)

Symbol IV[30d] IVChg IVChg% SkewAdjChg Last Change
TEA 18.5% +7.6 +69.8% +5.3 $15.43 -0.02
DLR 12.6% -7.1 -36.2% -8.5 $62.48 +0.59
NTI 41.0% +10.5 +34.3% -2.0 $21.81 +0.95
BMO 10.0% -3.0 -23.3% -3.1 $58.24 +0.75
TWO 16.5% -4.4 -20.9% -4.8 $11.14 +0.14
VYM 11.7% -3.0 -20.5% +nan $48.50 +0.60
MRX 11.5% +1.9 +20.0% +nan $43.22 +0.23
ACTG 55.7% +9.3 +19.9% +3.3 $20.34 -3.10
LOW 23.1% -5.2 -18.5% -5.2 $33.87 +1.89 Post-Earnings
HYG 7.9% -1.8 -18.4% -1.8 $91.86 +0.93

52-Week Highs
36 new highs: AGM AMRI ARMH BLL BMTI CHMT COG CPB CVI EHTH EV EXP FLT FNGN FSIN GGC GME GPK HFC HNP HNZ HRL HVT HYD INSM KT LOW MKC MMC MSG NNI NWL TPCG TREX WX YHOO

52-week Lows
47 new lows: .GVZ .VXEWZ ACTG ART ASYS BALT CACH CASY CPSL DMND EBR EBR/B EGLE ETR EXC GIFI INTC IQNT LLNW LRN MSB MSO MSTR NCTY NVTL OCZ OME ONE PLUG RSH RSYS SCOK SOMX SPMD SSN STEC SZYM TAT TEU TWGP TXCC UVXY VIIX VIXY VXX WHX WWAV

Top Equity Blocks

7.42m QTM 1.22 -0.03 -2.4% FINRA-ADF 11:22:19 – Burst
4.87m SPY 136.40 +2.12 +1.6% FINRA-ADF 10:19:52 – Average Price Trade
4.00m EWJ 9.19 +0.13 +1.4% FINRA-ADF 10:58:31
4.00m EWJ 9.19 +0.13 +1.4% FINRA-ADF 10:22:50
3.99m EWJ 9.19 +0.13 +1.4% FINRA-ADF 11:51:35
3.98m EEM 41.01 +0.56 +1.4% FINRA-ADF 13:54:39 – Seller
2.00m SPY 136.41 +2.17 +1.6% FINRA-ADF 12:01:42 – Derivatively Priced
2.00m VXX 32.31 -2.67 -7.6% FINRA-ADF 14:50:25 – Average Price Trade
1.62m SIRI 2.71 +0.02 +0.7% FINRA-ADF 12:52:36
1.57m AMD 1.91 +0.07 +3.5% FINRA-ADF 10:17:56 – Average Price Trade

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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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