WhatsTrading.com Options Recap — 11/30/2012

| November 30, 2012 | 0 Comments More


The Dow Jones Industrial Average has traded in a narrow 63-point range and is down 3 points heading into the afternoon session. Trading has been choppy and uninspired, driven by end-of-month position squaring and poor economic data. Data released early showed Personal Incomes unchanged and Spending down .2 percent in October. Economists were looking for a .2 percent increase in incomes and a .1 percent uptick in spending. Chicago PMI, released later, was 50.4 in November, from 49.9 in October and a bit less than the 50.7 that was expected. Overseas markets were mixed, with Japan’s Nikkei moving to 7 month highs, but most major European bourses seeing losses. The euro is pinned to 1.30 against the dollar. Crude oil bubbled 50 cents higher to $88.60, but gold lost $15.5 to $1714. Pessimistic commentary from Speaker Boehner about the lack of progress in Fiscal Cliff talks helped send VIX to session highs of 16+, but as been the case throughout the week, the whippy reaction to the rhetoric proved short-lived. The Dow is nearly flat and the NASDAQ dropped less than 5.

Trading in the options market is slowing ahead of the weekend, but reflects the cautious underlying tone. Projected volume is about 13.5 million contacts after 4.3 million calls and 4.6 million puts traded so far. Much of the increased put activity is in the exchange-traded funds, where a total of 2.3 million puts and 1.3 million calls have changed hands. Expiring Weekly 141 puts, 141.5 puts, and 142 calls on SPY are the day’s most actively traded contracts. Zynga (ZNGA) sees heavy volume on news of amended terms with its partnership with Facebook (FB). 39,000 calls and 14,000 puts traded in Zynga today. Verisign (VRSN) lost 14 percent and the stock sees high volume on news the company will be limited in raising its prices under a new deal with the US government. CLWR, PCS, and WLT are among the names seeing relative strength and higher call activity Friday. Lastly, Dollar General (DG) is up 25 cents to $50.11 and options volume on the stock is 5X the daily average. The stock will be added to the S&P 500 after the close of trading today.

Have a great weekend!

Notable Flow

CLWR – Bullish flow detected in Clearwire Corporation with 21241 calls trading, or 3x the recent avg daily call volume in the name. Shares near $2.395 (0.185) with ATMIV lifting by 2.93 point and 52% of todays call premium trading offer side. (Trade-Alert) 13:01

TLAB – Bullish flow detected in Tellabs Inc with 4593 calls trading, or 20x the recent avg daily call volume in the name. Shares near $3.415 (0.465) with ATMIV lifting by 3.48 point and 54% of todays call premium trading offer side. (Trade-Alert) 12:41

CEDC – Bearish activity detected in Central European Distribution Corp with 2132 puts trading, or 2x the recent avg daily put volume in the name. Shares near $1.74 (-0.04) with ATMIV lifting by 5.34 point and 65% of todays put premium trading offer side. (Trade-Alert) 12:31

High options volume is being seen in VRSN, ZNGA, PCS, TEVA, ELN, YUM, DECK, CTIC, WLT, YOKU

Movers

Symbol Last Change %Change StdDevs
MITL 3.26 +0.70 +27.3% 7.88 Post-Earnings
CBK 4.55 +0.88 +24.0% 6.89 Post-Earnings
NTLS 12.30 -3.87 -23.9% 9.38
RIC 2.91 -0.91 -23.9% 5.34
EBR/B 4.38 +0.69 +18.7% 2.87
TLAB 3.41 +0.46 +15.6% 8.22
FIVE 36.21 +4.82 +15.4% 5.15 Post-Earnings
DRWI 2.41 +0.30 +14.2% 3.04
VRSN 33.82 -5.52 -14.0% 4.73
ALIM 2.02 -0.30 -12.9% 3.73

Shakers (Implied volatility Movers)

Symbol IV[30d] IVChg IVChg% SkewAdjChg Last Change
VRSN 29.3% -50.1 -63.1% -61.8 $33.82 -5.52
ULTA 25.0% -19.5 -43.9% -19.0 $99.78 +6.63 Post-Earnings
OVTI 52.5% -26.7 -33.7% -26.6 $15.28 -0.61 Post-Earnings
PCS 53.6% +13.5 +33.5% +10.7 $10.47 +0.33
TWO 10.3% -4.9 -32.1% -4.8 $11.32 +0.03
HMA 38.5% +9.0 +30.5% +7.0 $7.82 -0.25
YOKU 58.4% -25.4 -30.3% -24.3 $17.51 +0.63 Post-Earnings
SPLK 47.9% -18.0 -27.4% -17.6 $30.22 +0.24 Post-Earnings
JCP 52.2% -19.3 -27.0% -1.5 $17.74 -0.40
WLT 64.8% +13.7 +26.9% +14.6 $30.85 +2.30

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 90 new highs: .BRB ABC ADT AFL AFSI AHS AMP AMRI AMWD AOS BAP BIV BKW BMTI CAG CBK CLX CNK COST CTB CUK CVA DDS DISH EBAY ECL EHTH EPP EWL FBC FFIN FISV FIZZ FNF GIL GPOR HBC HBI HNP HYD IFGL KALU KFN KMX KOF KUB LANC LUX MAS MRC MSI MUB MWA MYL NGS NHI NRF NTSP PAC PCBC PRXL PSX PUK RCL RGC RGR ROG RTHYL RWT RWX SAP SBAC SEAC SHAW SJM SLH SVXY SYT TAO TMO TSM TUP UGI UN V VAL VMC VMED WNR WX

52-week Lows
24 new lows: DPK DQ DVN EPV HDGE IVAN IXYS LEDS MKTS NTLS OMI PRGN RIC SBLK SCHS TNP UVXY VELT VIIX VIXM VIXY VXX VXZ ZUMZ

Top Equity Blocks

3.00m NOK 3.30 -0.01 -0.5% FINRA-ADF 12:17:43 – Average Price Trade
2.64m LINTA 19.30 +0.09 +0.5% FINRA-ADF 10:41:00
2.00m NOK 3.30 -0.03 -0.9% FINRA-ADF 13:00:42 – Average Price Trade
2.00m SIRI 2.79 +0.05 +1.8% FINRA-ADF 11:20:35
1.95m EWH 19.09 -0.07 -0.4% FINRA-ADF 10:58:33 – Burst
1.80m DRRX 1.00 -0.01 -1.0% FINRA-ADF 10:42:27
1.54m ONNN 6.64 -0.11 -1.6% FINRA-ADF 11:35:09
1.40m EWJ 9.30 -0.04 -0.4% FINRA-ADF 10:04:01 – Average Price Trade
1.28m CX 9.00 +0.01 +0.1% FINRA-ADF 10:27:11 –
1.00m QQQ 65.90 -0.18 -0.3% FINRA-ADF 13:12:55

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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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