WhatsTrading.com Options Recap — 11/29/2012

| November 29, 2012 | 0 Comments More


Stock market averages are holding gains despite pessimistic commentary from House Speaker John Boehner Thursday. Economic data was in focus early after GDP showed improvement to a 2.7 percent annual rate for the third quarter, which was not too far from economist estimates. Weekly Jobless Claims fell to 393K and also mostly in-line with expectations. Pending Home Sales, up 5.2 percent in the most recent period, was the bright spot. Stock market averages had moved higher through mid-morning with help from the data and in follow-through action from the day before. Equity markets across Europe and Asia moved broadly higher as well. Crude oil ticked up $1.38 to $87.87 and gold added $9.3 to $1725.8. However, the Dow Jones Industrial Average came off its highs midday after Speaker Boehner warned that no progress is being made on the Hill and the economy is in “real danger of going off the fiscal cliff”. Nancy Pelosi speaks a bit later and will probably shed additional light on the situation. The Dow is now up 44 points and battling higher again in the final 20 minutes. The NASDAQ gained 22 points.

Overall options volumes are running at their best levels so far this week and projected to total about 15.8 mln contracts. 8.1 mln calls and 6.7 mln puts traded across the exchanges so far. Despite all of the fiscal cliff chatter in the financial press, the truth is, there seems to be very little hedging activity going on among the pros. CBOE Volatility Index (.VIX) is off .36 to 15.15 and volumes have been light in the SPX pit all week. 211,000 calls and 336,000 puts have traded on the index. ZZZZZZZ. Tomorrow is the last trading day for November. After that, 20 trading days remain until yearend. The S&P 500 is up 12.7 percent year-to-date. While we continue to see whippy action around the rhetoric, it seems that the fate for stock market for 2012 is sealed and many players are content with the performance – there doesn’t seem to be enough motivation for investors to buy downside portfolio insurance. That, however, can change as the focus shifts to early-2013 and the next earnings reporting season. The bigger concern which is not widely discussed is the obvious revenue slowdown in corporate America that sent market averages skidding during the earnings-reporting season beginning mid-September and lasting through early-November.

Notable Flow

LYV – Bearish activity detected in Live Nation Entertainment Inc with 11703 puts trading, or 40x the recent avg daily put volume in the name. Shares near $8.8 (-0.05) with ATMIV lifting by 3.45 point and 59% of todays put premium trading offer side. (Trade-Alert) 12:51

TASR – Bullish flow detected in Taser International Inc with 7076 calls trading, or 9x the recent avg daily call volume in the name. Shares near $8.4355 (-0.5845) with ATMIV lifting by 6.45 point and 75% of todays call premium trading offer side. (Trade-Alert) 12:21

OVTI – Bullish flow detected in OmniVision Technologies Inc with 17455 calls trading, or 5x the recent avg daily call volume in the name. Shares near $15.82 (0.14) with ATMIV lifting by 6.16 point and 55% of todays call premium trading offer side. (Trade-Alert) 11:41

High options volume is being seen in EWJ, RIMM, INTC, ORCL, HLF, DG, SVU, TIF, VALE, TEA

Movers

Symbol Last Change %Change StdDevs
ASML 62.52 +15.14 +32.0% 18.02
IQNT 2.89 +0.67 +30.2% 2.37
BLOX 18.04 +4.09 +29.3% 10.32 Post-Earnings
SVU 2.30 -0.50 -17.9% 5.41
CWTR 5.67 +0.80 +16.4% 4.45 Post-Earnings
REDF 3.08 +0.40 +14.9% 1.14
LQDT 37.76 -5.97 -13.7% 5.81 Post-Earnings
SMRT 8.55 +0.96 +12.6% 4.39
CBAK 2.48 +0.27 +12.2% 0.96 Post-Earnings
SMTC 27.82 +2.90 +11.6% 5.52 Post-Earnings

Shakers (Implied volatility Movers)

KR 17.1% -11.9 -41.0% -9.9 $26.25 +1.19 Post-Earnings
GES 35.6% -22.3 -38.5% -21.4 $25.80 +0.55 Post-Earnings
ARO 45.2% -25.4 -36.0% -26.0 $13.44 -0.68 Post-Earnings
TIE 13.2% +3.3 +33.1% +nan $16.55 +0.02
WDAY 42.9% -20.2 -32.1% -20.4 $51.70 -1.49
TIF 25.5% -10.7 -29.6% -12.5 $59.66 -4.07 Post-Earnings
JCP 71.5% +15.0 +26.6% +nan $18.13 -0.19
ARR 39.7% +8.3 +26.6% +1.4 $6.96 +0.06
HLF 60.9% -20.0 -24.7% -19.3 $45.22 +0.21
DG 32.0% +5.7 +21.8% +6.1 $49.98 +0.40

52-Week Highs
149 new highs: ABC ADT AFL AHS ALK AMP AMWD AOS APO APOG ASML ATAX BAP BBX BKD BKE BKW BMI BMTI BOND BWS CAR CFX CHMT CM CNK COLM CPTS CRAY CSC CSU CTB CUBE CVA CVI CVLT CWTR CYMI DDD DDS DFS DIN DPZ EBAY ECL EGOV EHTH EPP EXPE FBC FBR FCFS FFIN FIS FIW FSIN FSTR GEL GGC GLDD GPK GPOR GWAY HBC HD HDB HITT HTH IEX IFGL IR IRET KFN KMX KR KUB LANC LBY LGND LLL LNN LORL LOW LUX MA MD MDF MMS MON MWA MYL NCS NHI NNI NTSP PCH PCP PENN PHO PKG PNR PRXL PSX PUK PVH RAX RBS RCL REGN RGC RGR RWT RWX SAP SCS SEAC SJM SLH SNTS SSYS STAG STC SVXY SWM SYT TAO THC TMO TPCG TREX TRMB TRW TSM TVL TWX TXI UGI UL UN V VAL VMC VMED WHR WNR WRC WST WX YUM

52-week Lows
21 new lows: CERP DPK EBR EFU EPV FMD GAME HDGE HHS IVAN IXYS LEDS MBLX MCF TEU UVXY VIIX VIXM VIXY VXX VXZ

Top Equity Blocks

7.02m EWJ 9.35 +0.10 +1.0% FINRA-ADF 13:23:59 – Burst
5.50m LSE 4.65 -0.23 -4.7% FINRA-ADF 15:42:31 – Burst
3.28m EEM 41.78 +0.27 +0.7% FINRA-ADF 11:51:38 – Burst
3.09m SIRI 2.72 +0.02 +0.7% FINRA-ADF 12:11:43
3.00m NOK 3.35 +0.08 +2.4% FINRA-ADF 11:26:36 – Average Price Trade
2.58m SIRI 2.73 +0.03 +1.1% FINRA-ADF 11:57:55
2.57m EWJ 9.33 +0.08 +0.8% FINRA-ADF 12:29:23 – Burst
2.50m S 5.67 -0.03 -0.5% FINRA-ADF 10:30:10
2.27m SIRI 2.70 +0.03 +1.1% FINRA-ADF 15:49:00
2.15m SIRI 2.71 +0.03 +0.9% FINRA-ADF 14:04:24

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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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