WhatsTrading.com Options Recap — 12/3/2012

| December 3, 2012 | 0 Comments More


The month of December is off to a slow start. Volume is light, there will be few earnings reports of significance this week, and the early economic data painted a mixed picture. While Construction Spending rose 1.4 percent in October and 1 percent more than expected, ISM Index for November dropped to 49.5 and below expectations of 51.2. Elsewhere, trading was mixed across Asian and European equity markets. The euro ticked to more than 1.305 against the dollar after EU officials announced a Greek bond buyback plan overnight. Crude oil surrendered its morning advance and is now up just a nickel to $88.96. Gold added $6 to $1718.5. But on Wall Street, the Dow Jones Industrial Average has been underwater throughout most of the day and is now down 35 points. The NASDAQ erased a modest midday gain and is down 3 points.

Trading in the options market is light and projected to total only 11.2 million contracts. 5.3 million calls and 4.2 million puts traded across the exchanges so far. CBOE Volatility Index (.VIX) is up .61 to 16.48 and options volume in the VIX pit is respectable, with about 440,000 calls and 149,000 puts traded on the index so far. The index is seeing greater volume than the S&P 500 itself, as 185,000 calls and 294,000 puts traded in the SPX pit. VIX tracks the expected volatility priced into S&P 500 Index options.

Among the individual stocks seeing action, volume is heavy in DELL on the heels of an analyst upgrade. The stock is up 4.8 percent and 74,000 options traded in DELL today. AMD saw a flurry of activity shortly after the opening bell and options volume is approaching 60,000 contacts. Shares of the chipmaker are up 6.4 percent and extending a five-day winning streak. Bullish trading is also being seen in QIHU, SWN, and FB, while bears are circling PBI, DV, and GCI.

Notable Flow

BMTI – Bearish activity detected in BioMimetic Therapeutics Inc with 5419 puts trading, or 27x the recent avg daily put volume in the name. Shares near $7.58 (-0.03) with ATMIV lifting by 10.96 point and 98% of todays put premium trading offer side. (Trade-Alert) 14:31
IBN – Bearish activity detected in Icici Bank Ltd with 2063 puts trading, or 4x the recent avg daily put volume in the name. Shares near $41.25 (0.26) with ATMIV lifting by 1.00 point and 56% of todays put premium trading offer side. (Trade-Alert) 11:51

MTG – Bullish flow detected in MGIC Investment Corp with 5259 calls trading, or 4x the recent avg daily call volume in the name. Shares near $1.88 (0.13) with ATMIV lifting by 8.51 point and 85% of todays call premium trading offer side. Auto Content (Trade-Alert) 11:41

High options volume is being seen in DELL, SDRL, AMD, VRSN, XLK, PBI, QIHU, MDRX, XEO, UAL

Movers

Symbol Last Change %Change StdDevs
CYCC 6.09 +0.92 +17.8% 3.45
CBAK 2.21 -0.31 -12.3% 1.07
SVU 2.66 +0.28 +11.6% 2.11
QIHU 27.76 +2.77 +11.1% 4.65
BEAT 2.40 +0.23 +10.6% 2.46
SXC 14.87 -1.38 -8.5% 4.14
LPHI 2.57 +0.20 +8.4% 2.37
DECK 41.47 +3.18 +8.3% 2.06
SCMP 4.81 -0.43 -8.2% 3.00
CZR 6.60 +0.50 +8.2% 1.50

Shakers (Implied volatility Movers)

Symbol IV[30d] IVChg IVChg% SkewAdjChg Last Change
SDRL 25.0% +12.1 +93.7% +8.6 $38.85 +0.32
XLU 12.3% +2.4 +24.3% +1.6 $35.06 -0.26
QIHU 47.8% +9.1 +23.5% +5.4 $27.80 +2.81
APL 26.0% +4.9 +23.2% +5.0 $31.86 -1.13
LYV 53.9% +10.1 +23.2% +9.8 $8.74 -0.04
TRLG 50.8% +8.9 +21.2% +4.3 $24.13 -1.96
FCE/A 34.2% +5.9 +21.0% +2.6 $15.23 +0.18
HMA 48.4% +8.1 +20.1% +6.1 $7.48 -0.47
DELL 37.1% +5.8 +18.4% +5.9 $10.09 +0.45
TWI 36.1% -7.1 -16.4% -7.1 $20.98 +0.65

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 125 new highs: ABC ADBE AFL AFSI AGP AHS AME AMRI AMWD AOS APO APOG ARCC ARMH ARTC BIOS BKD BMTI BSMX CAR CBK CHMT CINF CLX COST CRAY CSC CSU CTB CUBE CVA CYB DDS DFS DST EFX EMN EPP EV EWA EWL FBC FBR FET FIS FISV FMX FNF FSTR GEO GIL GPC GPK GPOR GRA GVA HBC HCC HD HIMX HITT HLSS HNP HOFT HSIC HTH HW IEX IFGL IR KFN KMX KR KUB LANC LBY LIOX LOW LTD LUX MA MD MITT MMS NHI NLS NNI NRF NTE PCP PENN PERI PHO PKI PNK POL PSX QIHU RCL ROG RWT RWX SAP SEH SHAW SJM SJR SLH SSP SSS SUNH SYT THC TMO TRW TTC TU TVL TWX TXI UN V VMC VMED WNR

52-week Lows
22 new lows: CLF CRDC DPK DWA EFZ EGLE EPV HDGE IXYS MCRS MELA OMI QLGC SIJ TNP UVXY VELT VIIX VIXM VIXY VXX VXZ

Top Equity Blocks

2.86m XLF 15.85 +0.05 +0.3% FINRA-ADF 09:53:14 – Average Price Trade
2.43m XLU 35.03 -0.18 -0.5% FINRA-ADF 10:07:01 – Average Price Trade
2.36m EEM 41.93 +0.15 +0.4% FINRA-ADF 15:07:28 – Burst
2.34m VWO 42.16 +0.15 +0.4% FINRA-ADF 15:08:11 – Burst
1.60m RAD 1.00 -0.01 -1.0% FINRA-ADF 10:00:09
1.40m SNV 2.40 +0.04 +1.7% FINRA-ADF 15:07:19 – Average Price Trade
1.27m YHOO 18.74 -0.03 -0.2% CHX (MIDWEST) 13:58:32
1.26m IYJ 71.70 -0.21 -0.3% FINRA-ADF 10:12:13 – Average Price Trade
1.21m XLP 36.09 +0.04 +0.1% FINRA-ADF 10:00:01 – Average Price Trade
1.13m VWO 42.22 +0.20 +0.5% FINRA-ADF 09:48:57 – Out of Sequence

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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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