WhatsTrading.com Options Recap — 01/08/2013

| January 8, 2013 | 0 Comments More


Stock market averages fell on a slow news day Tuesday. Although Alcoa (AA) unofficially kicks off the earnings reporting season after the closing bell, the earnings calendar is relatively light until next week, when a number of big financials are slated to release results. Outside of a report on Consumer Credit this afternoon, the economic news flow is light as well. Asia’s equity markets finished mostly lower in technical action after sizeable gains last week. European markets were mixed. Crude oil is flat at $93.19 and the metals are strengthening. Gold gained $13 to $1659. Yet, on Wall Street, the Dow Jones Industrial Average is down 55 points and the NASDAQ dropped 8.

Overall options volumes are running a bit lighter than the recent daily average and projected to reach only 13 million contracts. With forty-five minutes left to trade, 5.9 million calls and 5.7 million puts traded across the exchanges. Meanwhile, CBOE Volatility Index (.VIX) is showing surprisingly little movement after the steep drop last week, up just .05 to 13.84. Feb 17 – 20 call spreads and the Mar 19 – 24 call spreads on VIX are seeing interest today.

Among the other names seeing interesting options action Tuesday, a hefty trade in the April 14 – 16 put spread printed midday on the SPDR Financials (XLF). XLF is down 7 cents to $16.94. Monsanto (MON) has seen a flurry of activity, led by a Feb 90 – 95 put spread, 5000X, as shares move up $2.45 to $98.39 on better-than-expected earnings and revenue numbers. 46,000 options traded on Monsanto. Constellation Brands (STZ) is seeing relative weakness and Feb downside puts are busy on the stock ahead of earnings, due out tomorrow morning. A hefty put buyer surfaced in Linn Co (LNCO) Aug 35s. Marvell Tech (MRVL) saw an uptick in activity ahead of its presentation at the Consumer Electronics Show [CES]. Lastly, Kodiak Oil and Gas (KOG) is up another 10 cents to $9.49 on reports yesterday it canceled out of a conference presentation. 15,000 calls and 4,300 puts traded on KOG.

Notable Flow

MAKO – Bearish activity detected in MAKO Surgical Corp with 6879 puts trading, or 5x the recent avg daily put volume in the name. Shares near $10.94 (-0.3904) with ATMIV lifting by 3.00 point and 56% of todays put premium trading offer side. (Trade-Alert) 15:11
EMC – Bullish flow detected in EMC Corp with 29915 calls trading, or 3x the recent avg daily call volume in the name. Shares near $23.9 (-0.23) with ATMIV lifting by 1.04 point and 74% of todays call premium trading offer side. (Trade-Alert) 14:21

MRVL – Bullish flow detected in Marvell Technology with 11521 calls trading, or 2x the recent avg daily call volume in the name. Shares near $7.905 (0.075) with ATMIV lifting by 2.03 point and 73% of todays call premium trading offer side. (Trade-Alert) 12:41

High options volume is being seen in XLF, BA, AA, CELG, MET, YUM, ARNA, MON, EMC, NCT

Daily Open Interest Update

Monday’s total option volume of 14.7 million contracts resulted in net open interest growth of 2.10 million calls and 2.32 million puts. Bank of America Corporation (BAC), Intel Corporation (INTC), Apple Inc (AAPL) and Sirius XM Radio Inc (SIRI) saw the greatest growth. Top five new positions opened include 48k Sirius XM Radio Inc (SIRI) Jan-15 2 puts, 30k Gold Fields Ltd (GFI) Apr-13 13 calls, 25k Intel Corporation (INTC) Jan-13 22.5 calls, 19k Las Vegas Sands Corp (LVS) Mar-13 52.25 calls and 18k Facebook Inc (FB) Feb-13 27 puts. (Trade-Alert)

Movers

Symbol Last Change %Change StdDevs
PERI 11.38 +1.93 +20.4% 10.91
UNXL 16.80 -2.23 -11.7% 0.84
MDCO 28.83 +3.01 +11.7% 5.93
ISIS 11.84 +1.20 +11.3% 5.19
FOE 4.30 +0.43 +11.2% 2.09
THLD 4.70 +0.45 +10.6% 4.33
TNGO 14.63 +1.38 +10.4% 3.87
BTX 3.79 +0.34 +9.9% 3.01
EBR/B 4.71 -0.50 -9.6% 3.93
CENTA 8.96 -0.94 -9.5% 2.12

Shakers (Implied volatility Movers)

Symbol IV[30d] IVChg IVChg% SkewAdjChg Last Change
MDCO 44.2% -23.9 -35.0% -23.4 $28.91 +3.09
NCT 31.5% -15.5 -32.9% -12.0 $9.93 +0.33
STZ 51.5% +9.0 +21.1% +8.7 $36.11 -0.30 Pre-Earnings
MON 17.2% -4.6 -21.0% -3.3 $98.57 +2.63 Post-Earnings
BA 22.4% +3.6 +19.1% +1.7 $74.04 -2.09
CORN 28.6% +4.0 +16.0% +4.1 $43.23 +0.31
EXPR 50.1% +6.5 +14.8% +6.9 $15.14 +0.30
KOG 49.6% -7.7 -13.4% -7.7 $9.48 +0.09
TPX 50.7% +5.9 +13.3% +5.3 $33.42 -0.09
KOS 25.8% -3.7 -12.7% -2.7 $12.80 -0.20

52-Week Highs
165 new highs: ABC ACHC ADC ADS ADT AEGN AFCE AFSI AGN AINV ALK AMCC AMRI APOG ARMH BAM BAX BCEI BCO BCS BDX BIOS BITA BKW BMO BMTI CAR CBK CELG CFN CGI CHMT CLNY CMN CNK COR CP CRI CSU CUZ CVA CVS CXW CYBX CYH DDD DGI DISCA DISCK EBAY EGHT EPL ESC ETE EWL EXH FBHS FDUS FFIN FISV FLT FMC GASS GIL GILD GPOR GSH GUID HOLI HSC HSIC HTGC HTZ HUN IEX INXN IOSP ITB JNK KFN KKD LAZ LCC LDL LEN LGF LIFE LNN LPX LSE LUV LYG MCK MDCO MFC MIL MMM MON MPW MRC NCR NCS NCT NRF NSM NTSP NVS OCR ODFL OFG ORI OSK PACW PERI PFE PKG PKY PMT PODD POOL PPG PSTB PVH PWR RAX REXI RJET RLH RLJ RMD RNF RUTH RYAAY RYL SBNY SCS SCTY SEIC SEMG SIG SIRO SNY SPB SPU SUSP SWM TDY TEAR TKC TMH TMO TUES TVL TWX UHS V VAR VMI VRX WAC WRC WY WYN XLB ZMH

52-week Lows
13 new lows: ALLT AU BV CERP CIG CPL FINL FRED IVAC UVXY VIIX VIXY VXX

Top Equity Blocks
2.44m SIRI 3.10 +0.02 +0.6% FINRA-ADF 13:03:38
2.00m SPY 146.04 -0.64 -0.4% FINRA-ADF 13:53:19 – Average Price Trade
1.50m CLWR 2.89 -0.01 -0.3% FINRA-ADF 11:36:58
1.50m ALU 1.66 -0.07 -4.0% FINRA-ADF 10:07:40
1.30m STM 7.58 +0.13 +1.7% FINRA-ADF 12:00:46 – Average Price Trade
1.30m STM 7.57 +0.13 +1.7% FINRA-ADF 12:00:04 – Average Price Trade
1.26m YPF 15.00 +0.05 +0.3% FINRA-ADF 13:13:13 – Burst
1.25m S 5.82 -0.12 -2.1% CHX (MIDWEST) 11:43:27 – Tied to Options
1.21m IAU 16.17 +0.15 +0.9% FINRA-ADF 13:27:37
1.14m VZ 43.10 -1.07 -2.4% FINRA-ADF 14:33:00 – Burst

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Category: All Indexes, 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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