WhatsTrading.com Options Recap — 12/7/2012

| December 7, 2012 | 0 Comments More


Market action is mixed and slowing to a crawl heading into the final hour Friday. The economy was in focus early after the Labor Department said that 146,000 new jobs were created in November, which was significantly better than the 90,000 that was expected. The unemployment rate dropped to 7.7 percent and hourly earnings rose .2 percent. Overall, the report was better than economists had predicted and stock index futures ticked higher before the opening bell. However, the early rally attempt was thwarted after Univ of Michigan said its index of consumer sentiment fell to 74.5 this month and well below expectations of 82.7. Negative commentary from House Speaker John Boehner suggesting Obama is taking a “slow walk to the fiscal cliff” failed to bolster sentiment through midday, but the overall action has been rangebound and lacking conviction – which has been the case throughout the week. Crude oil is off 42 cents to $84.85, gold is up $2.5 to $1704.4 and stock market averages are little moved as well. The Dow Jones Industrial Average is up 57 points, with JPM and BAC posting the best gains. However, a $13 drop in Apple is weighing on the NASDAQ, which is down 14 points.

CBOE Volatility Index (.VIX) is down .54 to 16.08 and activity in the index pits have been anemic in recent days, suggesting that the media is focused on fiscal cliff concerns, but players don’t see the situation as a significant near-term event risk. Among the individual names seeing action, Groupon (GRPN) gained 71 cents to $4.52 and saw an afternoon pop higher along with increased options activity. Roughly 19,000 puts and 45,000 calls traded in Groupon. A bullish three-way spread was initiated in the Sandridge (SD) June calls. Shares of the Oklahoma City oil and gas company are up 44 cents to $7.23. Bullish trading is also being seen in TIVO, Hovnanian (HOV), and US Airways (LCC).

That’s a wrap. Please take a test-drive of our Premium product for more of today’s interesting options order flow. Also, keep in mind, only two weeks remain until the December expiration and Jan 2013s, which include former LEAPs, expire in six weeks. It could be a good time to sell some premium heading into the seasonally slow period in the second half of December. Check the order flow for ideas and have a great weekend!

Notable Flow

ZQK – Bullish flow detected in Quiksilver Inc with 6298 calls trading, or 7x the recent avg daily call volume in the name. Shares near $4.115 (0.105) with ATMIV lifting by 9.53 point and 54% of todays call premium trading offer side. (Trade-Alert) 13:21

GGP – Bullish flow detected in General Growth Properties Inc with 3409 calls trading, or 11x the recent avg daily call volume in the name. Shares near $20.29 (0.27) with ATMIV lifting by 1.07 point and 66% of todays call premium trading offer side. (Trade-Alert) 13:01

EXAS – Bullish flow detected in EXACT Sciences Corp with 2078 calls trading, or 8x the recent avg daily call volume in the name. Shares near $10 (0.01) with ATMIV lifting by 1.58 point and 97% of todays call premium trading offer side. (Trade-Alert) 12:41

High options volume is being seen in SD, FMCN, NXY, GRPN, GEO, XLY, PSX, AMRN, MU, TEVA

Daily Open Interest Update [New!]

Thursday’s total option volume of 13.2 million contracts resulted in net open interest growth of 1.96 million calls and 1.46 million puts. Bank of America Corporation (BAC), Apple Inc (AAPL), Sandridge Energy Inc (SD) and McMoRan Exploration Co (MMR) saw the greatest growth. Top five new positions opened include 60k Bank of America Corporation (BAC) Mar-13 13 calls, 47k Nokia Corp (NOK) Jan-14 7 calls, 42k Nexen Inc (NXY) Dec-12 27 calls, 27k Procter and Gamble Co (PG) Jul-13 72.5 calls and 21k Sandridge Energy Inc (SD) Dec-12 8 calls.

Movers

Symbol Last Change %Change StdDevs
GRPN 4.59 +0.78 +20.5% 2.03
AMRN 9.73 -2.22 -18.6% 4.60
JKS 4.64 +0.52 +12.6% 2.82
SGMO 5.96 +0.55 +10.2% 5.63
ARC 2.24 -0.25 -10.0% 3.97
SPRD 15.75 -1.62 -9.3% 2.90
GTAT 3.52 +0.30 +9.3% 2.33
GEO 32.15 +2.71 +9.2% 5.83
AACC 4.71 -0.44 -8.5% 1.58
BIOD 2.76 +0.21 +8.2% 3.04 Post-Earnings

Shakers (Implied volatility Movers)

Symbol IV[30d] IVChg IVChg% SkewAdjChg Last Change
FMCN 48.8% +16.0 +49.0% +11.7 $24.00 -0.75
ESI 72.4% +19.9 +37.8% +12.2 $18.90 +0.09
PANW 43.1% -24.5 -36.2% -23.5 $52.06 +0.76 Post-Earnings
AMRN 96.5% -38.2 -28.3% -34.6 $9.73 -2.22
EFA 16.3% +3.2 +24.7% +3.1 $55.48 +0.01
IVR 22.6% +4.3 +23.8% +nan $21.13 +0.05
SWHC 55.0% -17.0 -23.6% -18.0 $9.98 -0.87 Post-Earnings
AGNC 30.3% +5.4 +21.6% +5.4 $31.09 +0.07
EWH 15.5% +2.5 +19.0% +2.3 $19.27 +0.02
WIN 27.2% +4.2 +18.0% +nan $8.37 -0.10

52-Week Highs
42 new highs: AGP ASML ASR AWR BAC CHMT CRAY CVD DISH ELD ENB ETE EWA FMX FSIN GEO GRA HRB IFGL IPAR IR K KOF LYG MRX NCS NDSN NHI NWL PAC PCH RPT RWX SATS SLH SNY TAO TIVO TRMB TRW TV VVI

52-week Lows
28 new lows: ARC BCOV CACH CERP CRDC EDZ EEV EGLE ELN ENZN FXP GFI HTLD LEDS MEA NTES PANW PGH PRGN SB SCHS TEU TSRX VIXM VTSS VXZ WHX YOKU

Top Equity Blocks
17.0m LINTA 19.05 -0.23 -1.2% FINRA-ADF 13:50:26 – Burst
4.43m ELN 9.70 -0.13 -1.3% FINRA-ADF 12:56:51 – Burst
3.66m ELN 9.74 -0.09 -0.9% FINRA-ADF 13:06:55 – Burst
3.27m SPY 142.09 +0.11 +0.1% FINRA-ADF 14:02:29 – Derivatively Priced
3.00m GEN 2.63 FINRA-ADF 14:52:48 – Average Price Trade
2.62m BSX 5.55 -0.04 -0.7% FINRA-ADF 10:57:55 – Burst
2.50m LINTA 19.05 -0.23 -1.2% FINRA-ADF 14:04:13 – Burst
2.00m GEO 31.49 +2.01 +6.8% CHX (MIDWEST) 11:01:18 – Tied to Options
1.33m VWO 42.97 +0.08 +0.2% FINRA-ADF 11:29:03 – Burst
1.30m SIRI 2.77 -0.02 -0.7% FINRA-ADF 15:22:33

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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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