WhatsTrading.com Options Recap — 01/18/2013

| January 18, 2013 | 0 Comments More



Stock market averages slipped at the open following a round of mixed earnings reports and on the heels of disappointing reading on consumer sentiment, but news that Republicans are trying to push back the deadline for the debt limit to mid-April seemed to bolster sentiment midday. Intel (INTC) is down 6.9 percent and easily the Dow’s biggest loser after the chipmaker’s fourth quarter report was better-than-expected, but the company offered in-line guidance for the first quarter. A handful of other names, like Capital One (COF) and Suntrust (STI), also slipped on profit results, but Morgan Stanley (MS), GE, and State Street (STT) are among the stock seeing post earnings strength. Action is mixed.

On the economic front, the UNiv of Michigan said its sentiment index fell to 71.5 in January and well below expectations of 75. However, overseas, Asia’s markets finished with solid gains on the heels of a bullish GDP report out of China. European equity markets were mixed and the euro gave back .4 percent to 1.334 on the dollar, trading well off the day’s lows. A look at the commodities markets shows crude down 17 cents to $95.77 per barrel and gold down $6 to $1685. On Wall Street, stock market averages saw a modest uptick on the GOP debt deadline headline, but trading volume is falling off sharply heading into the three-day weekend. The Dow is up 12 points, but the NASDAQ lost 9.

On the options front, trading is active due to the expiration with a lot of rolling and closing activity driving volumes in the soon-to-expire Jan 2013 options, which includes many former LEAPs. Projected volume is 21.1 million contracts, as 10.8 million calls and 7.7 million puts have traded across all the exchanges. Profit reports are becoming an important driver for volume as well. INTC, MS, and GE are seeing high post earnings options flow. Meanwhile, AMD saw put buying ahead of its earnings due Tuesday and after Intel shares dropped 6.9. But two of the office supplies retailers, SPLS and ODP, saw noteworthy bullish flow. A long-term bull has been active in Sears 2015 options this week (Friday and Monday). Lastly, CBOE Volatility Index (.VIX) is seeing a complete collapse ahead of the three-day weekend. The market’s fear gauge is now down 1.05 to 12.52 and new 5-year lows.

Notable Flow

IGT – Bullish flow detected in International Game Technology with 7488 calls trading, or 12x the recent avg daily call volume in the name. Shares near $15.01 (-0.18) with ATMIV lifting by 2.30 point and 96% of todays call premium trading offer side. (Trade-Alert) 13:01

DNKN – Bullish flow detected in Dunkin Brands Group Inc with 10928 calls trading, or 11x the recent avg daily call volume in the name. Shares near $35.72 (0.67) with ATMIV lifting by 1.20 point and 81% of todays call premium trading offer side. Auto Content (Trade-Alert) 11:41

VMW – Bearish activity detected in Vmware Inc with 7110 puts trading, or 3x the recent avg daily put volume in the name. Shares near $93.8 (-1.56) with ATMIV lifting by 2.82 point and 56% of todays put premium trading offer side. (Trade-Alert)

High options volume is being seen in INTC, MS, GE, TLT, IYR, SHLD, AMAT, ARNA, CLSN, MU

Daily Open Interest Update

Thursday’s total option volume of 19.6 million contracts resulted in net open interest growth of 2.65 million calls and 3.06 million puts. Intel Corporation (INTC), Bank of America Corporation (BAC), Williams Companies Inc (WMB) and Dell Inc (DELL) saw the greatest growth. Top five new positions opened include 80k Williams Companies Inc (WMB) Jan-14 40 calls, 80k Williams Companies Inc (WMB) Jan-14 45 calls, 67k Intel Corporation (INTC) Jan-13 23.5 calls, 43k Dell Inc (DELL) May-13 14 calls and 26k Intel Corporation (INTC) Feb-13 24 calls. Auto Content (Trade-Alert) 9:01
Movers

Symbol Last Change %Change StdDevs
ISS 4.65 +0.54 +13.1% 3.64
TECUA 6.12 +0.68 +12.5% 5.32
DQ 10.00 +1.00 +11.1% 1.69
ONP 2.44 +0.24 +10.9% 3.01
LIFE 60.82 +5.85 +10.6% 7.15
AMD 2.45 -0.29 -10.6% 3.11
MOV 37.48 +3.48 +10.2% 4.03
FNSR 14.00 -1.58 -10.1% 5.05
JRCC 3.15 +0.28 +9.7% 2.58
VLCCF 6.89 +0.59 +9.4% 2.72

Shakers (Implied volatility Movers)

Symbol IV[30d] IVChg IVChg% SkewAdjChg Last Change
QRE 17.3% -6.3 -26.8% -7.2 $18.09 +0.14
PH 19.6% -6.4 -24.5% -5.6 $92.70 +1.34 Post-Earnings
XLNX 19.5% -5.6 -22.3% -4.9 $37.17 +0.73
LNCO 16.7% -4.7 -22.0% -4.4 $38.93 +0.68
STT 17.4% -4.9 -21.8% -2.2 $53.29 +2.91 Post-Earnings
MDRX 39.7% -11.1 -21.8% -11.1 $10.29 +0.15
GE 14.2% -3.9 -21.7% -2.8 $22.05 +0.75 Post-Earnings
INTC 20.1% -5.1 -20.2% -7.6 $21.10 -1.58 Post-Earnings
PKG 23.9% +3.9 +19.2% +3.7 $39.83 -0.11 Pre-Earnings
TWO 15.9% -3.7 -18.8% -3.7 $12.38 +0.01

52-Week Highs
312 new highs: .HGX ABC ACHC ACIW ADT AEIS AFSI AGII AGU AHT AIRM ALNY AME AMG AMJ AMZN AOS APO ARCT ARRS BDX BECN BKW BLMN BMRN BMS BOBE BOX BRK/B BSX BX CBOE CCE CELG CFN CG CHMT CI CINF CLW CM CMCSA CMCSK CODI COL COV CPA CRAY CRL CSII CSV CTSH CUZ CXW CYH DCT DDD DHR DIN DOV DPZ DST DVY DW DXJ EFII EFX EGAN EMN EMR ENR EOG EPB EPHC EQIX ERIC ESC EV EVR FBHS FBRC FBT FCFS FEIC FFIN FITB FIW FLS FLT FMX FRGI FUL FXD FXZ GASS GEL GEO GHL GMT GPK GS GSH GY HAE HCA HERO HLX HMA HOLX HON HOTT HRL HTCH HW HYG HZO ICON IEX IFF IHF IJR IJS IJT ININ IOSP IR ITB ITW IVE IVR IWC IWM IWN IWO IYJ IYT JACK JAH JNJ JNK KBE KCAP KCE KEY KFN KKD KMR KMX KOF KOP KS LAZ LBTYA LECO LEN LGF LIFE LII LLL LOCK LOW LUV LYB MANU MCK MCO MDT MFA MHK MINI MKC MLHR MMM MMS MOV MPEL MRC MS MSG MSI MTD MWA NCT NEU NI NLS NP NRF NRG NUE OC ODP OFC OII OMX ORCL ORIT OTTR OZRK PAA PBJ PCL PCRX PDM PFF PH PHO PIR PJC PKI PLD PLL PMT PNR PODD POST PPC PPG PRIM PRLB PRSC PT QUAD RCI RDY RHI RJF RLGY RLJ RMD ROIC ROP RTI RWT RYL RYN SATS SCCO SCHA SCI SCZ SEP SHOO SHW SIG SJR SLF SONC SPB SPNC SRE SSYS STAG STT SUSS SVXY SWM SYK SYRG TECUA TEL TFX TGI THC TILE TMH TMO TNA TRAK TRN TROW TRS TRV TSN TTEK TVL TWO TYPE UMDD UNTD URE URI URTY USG UTEK UVV UWM UXI VB VBK VBR VCR VFH VHS VIS VIVO VLO VMC VO VOE VRNT VVC WCBO WDR WPPGY XHB XL XLB XLI XTXI ZMH ZNH

52-week Lows
21 new lows: .BVZ .OVX .VIX .VXEEM .VXEWZ ERY HDGE RWM SCHS SCOK SJB SRS SRTY TWM TZA UVXY VIIX VIXM VIXY VXX VXZ

Top Equity Blocks
4.00m SPY 148.02 -0.33 -0.2% FINRA-ADF 11:19:58 – Average Price Trade
4.00m SPY 148.02 -0.29 -0.2% FINRA-ADF 11:19:25 – Average Price Trade
4.00m SPY 148.02 -0.31 -0.2% FINRA-ADF 11:18:26 – Average Price Trade
4.00m SPY 148.02 -0.35 -0.2% FINRA-ADF 11:17:04 – Average Price Trade
4.00m SPY 148.02 -0.35 -0.2% FINRA-ADF 11:17:03 – Average Price Trade
4.00m SPY 148.02 -0.41 -0.3% FINRA-ADF 11:13:13 – Average Price Trade
3.97m EWJ 9.83 FINRA-ADF 13:10:58
3.00m QTM 1.25 -0.05 -3.8% FINRA-ADF 12:48:15
2.00m EWJ 9.85 +0.01 +0.1% FINRA-ADF 12:20:55 – Average Price Trade
2.00m SPY 147.98 -0.20 -0.1% FINRA-ADF 10:30:01 – Derivatively Priced

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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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