WhatsTrading.com Options Recap — 12/27/2012

| December 27, 2012 | 0 Comments More


Trading remains whippy and headline-driven. Early action was orderly following a day of mixed trading in overseas markets and after the Labor Department said that jobless claims fell to 350,000 last week, from 362,000 and much better than the 375,000 that was expected. The early enthusiasm didn’t last, however, after the latest Consumer Confidence Index from the Conference Board fell to only 65.1 for December, from 71.5 and well below expectations of 65.1. Shortly thereafter, selling pressure intensified after Senator Harry Reid warned that it’s too late to avoid the fiscal cliff. The Dow Jones Industrials lost as much as 150 points, but then bounced in afternoon action on reports the House will hold a special session at 6:30 on December 30. The Dow has trimmed its loss to only 30 points. With 40 minutes left to trade, the NASDAQ is off just 4 points and Apple has once again held the $505 level before bouncing higher, possibly forming a triple-bottom formation on the daily chart (or, is it, the bottom is about to fall out pattern?).

Overall options volumes are respectable given that many desks are still operating with skeleton crews. The projected volume is about 14 million contracts and 3 million more than yesterday. About 6.5 million calls and 6.3 million puts traded so far. SPDR 500 Trust (SPY) 141 puts expiring on 1/4 are the day’s most actives. 144,300 have changed hands. December Quarterly 141 puts are the second most actives. SPY is now down 27 cents to $141.48 and some investors were probably buying 141 puts to hedge the risk of further market declines. Ford Motor (F) continues to see heavy trading ahead of Jan 2 December sales numbers. Shares are down 7 cents to $12.72 and 234,000 options traded in Ford. A large block of puts traded on Knight Capital (KCG). A number of retailers, including ANN, M, and SKS, have seen increasing options action as well. Lastly, CBOE Volatility Index (.VIX) saw a spike to multi-month highs of 20.90, but is now up .10 to 19.58. Trading in the VIX pit is active. 335,000 calls and 246,000 puts so far.

Notable Flow

GCI – Bearish activity detected in Gannett Co Inc with 7511 puts trading, or 13x the recent avg daily put volume in the name. Shares near $17.62 (-0.54) with ATMIV lifting by 3.35 point and 96% of todays put premium trading offer side. (Trade-Alert) 14:31

QLIK – Bullish flow detected in Qlik Technologies Inc with 2458 calls trading, or 2x the recent avg daily call volume in the name. Shares near $21.04 (-0.57) with ATMIV lifting by 2.91 point and 56% of todays call premium trading offer side. (Trade-Alert) 13:01

PAYX – Bearish activity detected in Paychex Inc with 9098 puts trading, or 3x the recent avg daily put volume in the name. Shares near $30.72 (-0.43) with ATMIV lifting by 2.04 point and 90% of todays put premium trading offer side. (Trade-Alert) 12:31

High options volume is being seen in CMSCA, KCG, MRVL, UPS, GDXJ, RTN, KORS, CMCSK, MON, KLAC

Daily Open Interest Update

Wednesday’s total option volume of 10.6 million contracts resulted in net open interest growth of 1.61 million calls and 1.71 million puts. Nike Inc (NKE), Bank of America Corporation (BAC), Ford Motor Company (F) and Research In Motion Ltd (RIMM) saw the greatest growth. Top five new positions opened include 42k Ford Motor Company (F) Feb-13 13 calls, 23k Nike Inc (NKE) Jan-13 45 puts, 19k Nokia Corp (NOK) Feb-13 3.5 puts, 19k Bank of America Corporation (BAC) Jan-14 12 puts and 18k Bank of America Corporation (BAC) Apr-13 15 puts. (Trade-Alert) 9:01

Movers

Symbol Last Change %Change StdDevs
ENPH 3.41 +0.38 +12.5% 2.37
SPMD 3.26 -0.41 -11.2% 1.26
BPZ 3.05 +0.27 +9.7% 3.73
.GVZ 14.81 +1.25 +9.2% 1.90
ISS 4.59 +0.36 +8.5% 2.56
DECK 37.76 +2.88 +8.3% 2.08
FOL 9.60 +0.71 +8.0% 2.63
PZE 5.08 +0.37 +7.8% 1.82
ZAZA 2.15 -0.18 -7.7% 1.71
NUS 35.66 +2.46 +7.4% 1.80

Shakers (Implied volatility Movers)

Symbol IV[30d] IVChg IVChg% SkewAdjChg Last Change
ESI 43.8% -56.5 -56.3% -56.9 $17.25 +0.03
JNK 7.6% +1.9 +32.8% +nan $40.65 +0.05
HOGS 14.2% -6.6 -31.8% -7.2 $12.74 +0.10
TWO 19.0% -7.8 -29.2% +nan $11.08 -0.04
TEA 10.0% -3.1 -23.8% -2.9 $15.49 +0.02
CBOU 22.6% +3.8 +20.3% +2.9 $16.13 +0.03
APD 19.4% +3.0 +18.6% +2.5 $84.36 -1.39
NS 24.4% +3.7 +17.7% +nan $42.57 -1.45
KRFT 18.1% +2.7 +17.6% +nan $44.34 +0.19
VIXY 79.5% +10.0 +14.4% +7.3 $18.39 +0.34

52-Week Highs
37 new highs: .YUK AVNW BAC BNS CADX CBK CHMT CSU DPZ EMN EWD EWQ FR FXS HOGS HOLI HPP HW LFC LGND MCRI MTX MUSA NMR OFG PKG PPG RBS RDN RKUS RLGY RSE SMA SNY SYRG TVL YCS

52-week Lows
37 new lows: .SKA .XDN BBY CERP DLB DOM ECT EFU EFZ ENZN EUFX FOLD FXY GAZ GEOK GMED GSE GTAT KSS MELA MRVL OPTR OSUR PBI PCXCQ PGH PLCE PLUG SCHS SYX TEU TEVA TLAB TNGO USEG ZOOM ZUMZ

Top Equity Blocks
2.00m XLU 34.68 -0.20 -0.6% FINRA-ADF 10:45:54 – Average Price Trade
2.00m KCG 3.50 +0.03 +0.9% FINRA-ADF 11:13:19
1.72m XLU 34.51 -0.33 -0.9% FINRA-ADF 12:14:22 – Average Price Trade
1.20m C 38.71 -0.85 -2.2% CHX (MIDWEST) 14:23:58 – Tied to Options
1.00m SPY 141.75 -0.98 -0.7% FINRA-ADF 11:07:30 – Average Price Trade
1.00m GEOK 0.09 -0.24 -72.8% 14:25:31
1.00m HES 52.09 -0.23 -0.4% FINRA-ADF 13:07:07 – Out of Sequence
818k CSCO 19.70 -0.39 -1.9% CHX (MIDWEST) 14:40:28 – Tied to Options
814k WIN 8.30 -0.10 -1.2% FINRA-ADF 12:36:18 – Burst
750k NOK 4.00 -0.05 -1.2% FINRA-ADF 10:57:42 – 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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