WhatsTrading.com Options Recap — 01/02/2013

| January 2, 2013 | 0 Comments More


Stock market averages are holding solid gains after the House passed a budget bill late-Tuesday to avoid taking the economy off the fiscal cliff with massive spending cuts and tax hikes. The bill had already passed through the Senate and the final step to make it law is a signature from President Obama. Stock index futures moved sharply higher on the headline Tuesday evening and market averages rallied at the open. However, the day’s gains were scored in the first 10 minutes of trading and, from that point forward, action has been rangebound with a slight downside bias. Still, the Dow Jones Industrial Average is sporting a solid 220-point gain and the NASDAQ added 71 points.

Overall options volumes are running at respectable levels and projected to reach almost 20 million contracts. With about an hour left to trade, 8.9 million calls and 7 million puts have changed hands. Bank of America Jan 12.5 calls are the day’s most actives with volume approaching almost 100K. Meanwhile, CBOE Volatility Index (.VIX), which plummeted 4.7 points Monday, is down another 2.78 to 15.24 to start the New Year.

Among the individual names seeing action, Ford Motor (F) continues to see high volumes ahead of its monthly sales results, due out tomorrow. Ford shares are up 9 cents to $130.04 and more than 300,000 options traded on the automaker. A large bullish call spread traded on H-P in the January 2014 options Wednesday. Market Vectors Gold Mining Fund (GDX) is seeing high volumes, led by a large trade in the Jan 45 puts on the ETF. Lastly, the casino operators – LVS and MGM – are seeing higher options volumes as well.

Notable Flow

FSL – Bearish activity detected in Freescale Semiconductor Ltd with 2136 puts trading, or 28x the recent avg daily put volume in the name. Shares near $11.76 (0.75) with ATMIV lifting by 1.91 point and 53% of todays put premium trading offer side. (Trade-Alert) 10:31
JWN – Bullish flow detected in Nordstrom Inc with 5004 calls trading, or 2x the recent avg daily call volume in the name. Shares near $54.09 (0.59) with ATMIV lifting by 3.50 point and 59% of todays call premium trading offer side. (Trade-Alert) 10:41

ARO – Bullish flow detected in Aeropostale Inc with 3199 calls trading, or 3x the recent avg daily call volume in the name. Shares near $13.02 (0.01) with ATMIV lifting by 1.27 point and 70% of todays call premium trading offer side. (Trade-Alert) 11:21

High options volume is being seen in F, LVS, MGM, MS, HPQ, SDS, PBR, MTG, and RDN

Daily Open Interest Update

Monday’s total option volume of 16.4 million contracts resulted in net open interest growth of 1.64 million calls and 1.96 million puts. Ford Motor Company (F), Bank of America Corporation (BAC), Apple Inc (AAPL) and Citigroup Inc (C) saw the greatest growth. Top five new positions opened include 42k Bank of America Corporation (BAC) Jan-13 10 puts, 30k Citigroup Inc (C) Jan-14 50 calls, 29k Citigroup Inc (C) Jun-13 42 calls, 16k Ford Motor Company (F) Jan-13 12.5 puts and 16k Bank of America Corporation (BAC) Apr-13 15 puts. Auto Content (Trade-Alert) 9:01

Movers

Symbol Last Change %Change StdDevs
ZIP 12.20 +3.96 +48.1% 23.60
UVXY 16.61 -4.29 -20.5% 2.21
SIGA 3.15 +0.53 +20.2% 8.35
PRGN 2.68 +0.44 +19.6% 2.83
RJET 6.79 +1.11 +19.5% 19.13
IQNT 3.07 +0.50 +19.5% 3.48
SGYP 6.10 +0.84 +16.0% 4.94
HIMX 2.78 +0.38 +15.8% 7.76
.BVZ 15.20 -2.82 -15.6% 2.01
.VIX 15.20 -2.82 -15.6% 2.01

Shakers (Implied volatility Movers)

Symbol IV[30d] IVChg IVChg% SkewAdjChg Last Change
ZIP 17.7% -34.6 -66.1% -62.7 $12.20 +3.96
BRK/B 10.5% -4.2 -28.8% -2.6 $92.75 +3.05
GD 19.9% -6.8 -25.4% -5.3 $70.55 +1.28
HOGS 19.6% +3.9 +25.1% +1.2 $12.90 +0.06
LMT 19.1% -5.9 -23.5% -5.3 $92.70 +0.41
.SPXPM 12.8% -3.7 -22.4% +nan $1453.53 +27.34
SPXU 38.6% -11.0 -22.1% -6.9 $35.63 -2.12
UPRO 37.8% -10.6 -21.9% -6.5 $93.18 +4.93
SPXL 37.7% -10.5 -21.9% -6.2 $92.82 +5.17
SPXS 37.4% -10.4 -21.8% -7.2 $15.92 -0.99

52-Week Highs
567 new highs: Too many symbols to list

52-week Lows
43 new lows: .SKA .VXEEM .VXEWZ .XDN ABT DPK DWA EDZ EEV EPAX EPV FAZ FSA FXP FXY HDGE KSS MIDZ MZZ NTLS RSW RUSS RWM SDS SEF SH SIJ SJB SKF SKUL SMDD SMN SPXS SPXU SRTY TLYS TWM TZA UPL UVXY VIXM YANG ZOOM

Top Equity Blocks
8.71m UWM 47.87 +2.61 +5.8% FINRA-ADF 14:11:37 – Average Price Trade
7.67m IWM 86.38 +2.29 +2.7% FINRA-ADF 14:11:36 – Average Price Trade
5.00m VXX 28.89 -2.92 -9.2% FINRA-ADF 14:34:53
3.73m UST 56.29 -0.46 -0.8% FINRA-ADF 14:10:33 – Derivatively Priced
2.41m IEI 123.15 -0.06 -0.0% FINRA-ADF 14:09:54 – Derivatively Priced
2.34m ES 3.15 +0.03 +1.0% FINRA-ADF 14:12:20
2.00m NOK 4.07 +0.12 +3.0% FINRA-ADF 11:24:44 – Average Price Trade
2.00m NOK 4.07 +0.12 +3.0% FINRA-ADF 11:15:51
2.00m IWM 84.29 +1.93 +2.3% FINRA-ADF 12:55:55 – Average Price Trade
1.87m UST 56.29 -0.47 -0.8% FINRA-ADF 14:04:54 – 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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