WhatsTrading.com Options Recap — 01/03/2013

| January 3, 2013 | 0 Comments More


Stock market averages are modestly lower after the big gains to start the New Year Wednesday. Some of the focus shifted to the jobs situation early after ADP reported that the economy added 215K private sector payrolls last month. Economists were expecting 160K. However, the Labor Department reported that jobless claims increased by 10K to 372K last week and about 7,000 more than expected. After the 303 point rally yesterday, the Dow Jones Industrial Average sputtered at the open ahead of key jobs data Friday and trading was rangebound into midday. Then, market averages slumped after the release of minutes from the latest Fed meeting suggested that some members are looking to end the recent bond buyback, QE, program. Bonds tanked on the news and TLT has suffered an impressive three-day drop. The metals are also under pressure and gold lost $27 to $1662. Crude is off 46 cents to $92.66. The Dow is now down 30 points and the NASDAQ dropped 15.

Overall options volumes are running at respectable levels again today and projected to reach more than 18 million contracts. With about 15 min left to trade, 9.4 million calls and 7.7 million puts have changed hands. After a dramatic two-day 8-point rout, VIX is up .03 to 14.71.

Among the individual names seeing action, the automakers are seeing heavy trading on the heels of monthly auto sales numbers. Ford (F) is up 26 cents to $13.26 and new 52-week highs. Volume in Ford options is approaching 500,000 contracts. GM is also at 52-week highs, up 68 cents to $29.81. 142,000 options traded in General Motors (GM). Some of the solar names are seeing interest following an upgrade of SunPower (SPWR). Shares are up $2.63 to $8.77 and 24,000 options traded in SPWR today. Acme Packet (APKT) sees relative weakness and high options volume on cautious broker commentary about its partnership with VZ (unconfirmed). APKT dropped 98 cents to $21.55 and Jan 21 puts, Feb 18 puts and Weekly 20 puts on the stock are busy today. Lastly, a number of retailers are seeing increasing options volume on the heels of monthly same store sales results. Tiffany (TIF), Gap Stores (GPS), and Macy’s (M) are among them.

Notable Flow

HAS – Bullish flow detected in Hasbro Inc with 10735 calls trading, or 25x the recent avg daily call volume in the name. Shares near $36.07 (0.25) with ATMIV lifting by 1.45 point and 87% of todays call premium trading offer side. (Trade-Alert) 15:21

MAT – Bearish activity detected in Mattel Inc with 10904 puts trading, or 25x the recent avg daily put volume in the name. Shares near $36.635 (-0.165) with ATMIV lifting by 2.05 point and 51% of todays put premium trading offer side. (Trade-Alert) 11:31

APKT – Bearish activity detected in Acme Packet Inc with 14828 puts trading, or 9x the recent avg daily put volume in the name. Shares near $21.72 (-0.81) with ATMIV lifting by 3.53 point and 63% of todays put premium trading offer side. Auto Content (Trade-Alert) 14:51
High options volume is being seen in F, GM, C, HLF, WMB, FSLR, HAL, BP, T

Daily Open Interest Update

Wednesday’s total option volume of 19.3 million contracts resulted in net open interest growth of 2.47 million calls and 2.53 million puts. Bank of America Corporation (BAC), Ford Motor Company (F), Apple Inc (AAPL) and Hewlett Packard Co (HPQ) saw the greatest growth. Top five new positions opened include 25k Bank of America Corporation (BAC) Apr-13 10 puts, 24k Ford Motor Company (F) 1/4 weekly 13 puts, 23k General Electric Company (GE) Jan-13 22.5 calls, 21k MGIC Investment Corp (MTG) Jan-13 3 calls and 20k Bank of America Corporation (BAC) Apr-13 14 calls.

Movers

Symbol Last Change %Change StdDevs
SPWR 8.86 +2.73 +44.5% 12.57
ALLT 13.80 -4.48 -24.5% 5.75
VISN 4.23 +0.73 +20.9% 3.41
VRNG 3.48 +0.56 +19.2% 5.56
TSL 5.29 +0.81 +18.1% 3.83
MLNX 50.50 -10.69 -17.5% 5.80
YGE 2.89 +0.42 +17.0% 3.04
FOLD 3.30 +0.46 +16.2% 1.07
LNDC 11.37 +1.55 +15.8% 6.54 Post-Earnings
FDO 55.65 -8.39 -13.1% 5.76 Post-Earnings

Shakers (Implied volatility Movers)

Symbol IV[30d] IVChg IVChg% SkewAdjChg Last Change
FTNT 57.1% +15.5 +37.2% +14.0 $19.34 -1.85
MLNX 65.9% -32.3 -32.9% -44.4 $50.50 -10.69
SPWR 80.7% +19.8 +32.4% +6.2 $8.84 +2.71
BIIB 24.4% -8.6 -26.1% -8.8 $147.63 -2.37
FDO 26.2% -8.6 -24.7% -10.7 $55.65 -8.39 Post-Earnings
KSS 25.4% -7.9 -23.6% -7.6 $42.28 +0.07
JWN 23.9% -6.8 -22.0% -5.1 $55.20 +1.57
BKS 47.6% -12.8 -21.1% -12.2 $14.31 -0.20
CBOU 23.8% +4.0 +20.5% +nan $16.16 -0.03
MAKO 77.1% +12.5 +19.3% +11.8 $12.35 -0.64

52-Week Highs
363 new highs: .HGX ABG ACAS ACE ACWI ADC ADS AEGR AER AHT AME AMG AMP APO ARG ASGN ASH ASR ATK AVY AWR AYI BA BAP BC BDBD BDX BEAV BECN BG BKH BLDR BLK BLL BMI BMRN BMS BOBE BRK/B BXG C CAR CBK CBS/A CCE CECE CFX CHMT CHSP CKEC CMN CMS COR CORE CP CPA CROP CSC CSII CSL CSU CSV CTB CTGX CTS CX CYT CZZ DAL DBV DHR DIN DKL DOV DPZ DRC ECL EET ELD EMR EOG EPB EQIX EQM ESV EVR EWM EWW EXH EXP EXPE EXR F FAA FAF FAS FBHS FCFS FDN FET FISV FIW FLO FLS FNF FR FRP FSP FUL FXI FXO GA GBLI GEL GHL GIL GLDD GM GMO GPK GRP GS GSIT GVA GXC HAE HAO HCC HERO HIG HLX HMA HON HOTT HRL HSNI HUB/B HXL HYG IDTI IEX IFF IFSIA IJH IJK IJR INFI INGR IOSP IRET ITB IVE IVZ IWD IWM IWN IWP IWR IWS IYF IYJ IYT JKHY KAI KAMN KBWB KCE KEP KIE KKD KSU KWR LAD LAZ LBTYA LECO LEDR LEG LEN LFC LII LKQ LMCA LNC LNG LPX LUV LXP LYTS MA MCHI MCO MCRI MD MDY MHK MIC MIL MMP MNI MOLX MON MOO MPEL MPW MPWR MSI MTX MUSA MVV MWA MWV MX MXIM NCR NCT NDSN NHI NNI NRF NSR NXPI OC ODFL OFG OKSB OPEN ORI OSK PAA PAC PACW PCH PCL PCP PCY PDP PEI PJC PLD PMT PNR POL POM POOL POR PRI PZZA QIHU QUAD RAX RCI RHI RJET RJF RKUS RLJ ROG ROK ROLL ROP RPM RSE RSP RTI RWT RY RYN SAA SAH SBGI SBNY SCHA SCS SCTY SDY SEH SEMG SIAL SIRI SLH SLRC SNBC SNTA SNV SODA SONC SSS SUSP SWM SXL SYMC SYRG TAO TASR TCB TDY TEL TFSL TFX TGI THC TKC TM TMH TNA TRGP TRMB TRN TROW TRS TRW TSM TTEC TV TVL TWX UGI UHS UNF UNP UNS URBN URTY USG UVV UWM UXI UYG V VAC VAR VB VBK VBR VCR VFH VIG VLO VMI VO VOT VRSK VT VWO VXF WAB WAL WCN WGO WHR WOR WTS WY WYN XHB XLF XLI XLY XPP XXIA YAO YCS

52-week Lows
35 new lows: .VXEEM .VXEWZ .XDN ALLT CERP DG EDZ EEV EPAX FAZ FXP FXY KSS LCAV MELA MIDZ MZZ RUSS RWM SDS SH SMDD SPXS SPXU SRTY TWM TZA UVXY VIIX VIXM VIXY VLTR VXX VXZ YANG

Top Equity Blocks
3.66m RSP 54.76 -0.05 -0.1% FINRA-ADF 14:36:39 – Average Price Trade
2.00m GE 21.28 -0.06 -0.3% FINRA-ADF 10:44:47
1.68m INTC 21.30 -0.11 -0.5% FINRA-ADF 15:45:15
1.61m ORCL 34.81 -0.45 -1.3% FINRA-ADF 15:45:15
1.50m SPY 146.19 +0.13 +0.1% FINRA-ADF 12:03:48
1.44m EEM 45.22 -0.06 -0.1% FINRA-ADF 14:03:17 – Average Price Trade
1.43m QQQ 67.27 -0.06 -0.1% FINRA-ADF 14:04:01
1.42m GME 25.75 -1.45 -5.3% FINRA-ADF 15:45:15 – Average Price Trade
1.39m S 5.82 +0.03 +0.5% FINRA-ADF 12:46:54
1.30m VXX 27.66 +0.07 +0.3% FINRA-ADF 14:21:48 – 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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