WhatsTrading.com Options Recap — 01/22/2013

| January 22, 2013 | 0 Comments More



Stock market averages are holding modest gains, as earnings news trumped weak housing numbers Tuesday. Traveler’s (TRV), Delta (DAL), Verizon (VZ), and Freeport McMoran (FCX) are among the names moving higher on earnings today. In economic news, a report released this morning showed Existing Homes Sales fall to a 4.94 million rate in December, down from 4.99 and below expectations of 5.1 million. The negative reaction to the data was short-lived and action was mixed into midday. Elsewhere, crude oil is up 62 cents to $96.66 and gold gained $4.5 to $1691.5. Japan’s Nikkei saw a modest decline after the BOJ concluded its two-day policy meeting and, as widely anticipated, vowed more asset purchases. European markets were modestly lower after tacking on gains Monday. The euro is flat at 1.3315 on the dollar. The Dow Jones Industrial Average is now up 45 points and midway within the day’s range. The NASDAQ has seesawed in and out of positive territory and is up 4.8 points, session highs.

On the options front, trading is active and projected to be about to total 16.5 million contracts. About 8.9 million calls and 7.4 million puts so far. CBOE Volatility Index (.VIX) has surrendered morning gains and is up just .10 to 12.56. The three most active options today are VIX May 22 calls, April 17 puts, and March 24 calls. Among the other names seeing flow, high volume in DELL continues after CNBC reported that LBO talk is ongoing. 63 million shares and 195K options traded in DELL. Google is seeing higher flows ahead of earnings, due out after the closing bell. 182K options traded in Google today. GM was the subject of bullish trading, driven by hefty March 30 – 32 call spreads. Bullish trading continues in Williams Companies (WMB), Dunkin (DNKN), and Phillips 66 (PSX). Lastly, earnings is driving higher volumes in a variety of other names including FCX, IBM, AMD, and VZ.

Notable Flow

RFMD – Bullish flow detected in RF Micro Devices Inc with 5008 calls trading, or 8x the recent avg daily call volume in the name. Shares near $4.865 (0.085) with ATMIV lifting by 3.01 point and 52% of todays call premium trading offer side. (Trade-Alert) 13:21

JOY – Bearish activity detected in Joy Global Inc with 9675 puts trading, or 4x the recent avg daily put volume in the name. Shares near $67.69 (-1.32) with ATMIV lifting by 1.14 point and 52% of todays put premium trading offer side. (Trade-Alert) 13:11

TSS – Bullish flow detected in Total System Services with 2933 calls trading, or 183x the recent avg daily call volume in the name. Shares near $23.68 (0.06) with ATMIV lifting by 3.10 point and 99% of todays call premium trading offer side. (Trade-Alert) 13:01

High options volume is being seen in RIMM, FCX, DELL, GOOG, IBM, CHK, GM, EWJ, CLSN, STX

Daily Open Interest Update

Friday’s total option volume of 22.1 million contracts resulted in net open interest growth of 4.58 million calls and 3.69 million puts. Bank of America Corporation (BAC), Facebook Inc (FB), Morgan Stanley (MS) and Research In Motion Ltd (RIMM) saw the greatest growth. Top five new positions opened include 51k Facebook Inc (FB) 2/1 weekly 34 calls, 50k Facebook Inc (FB) 2/8 weekly 34 calls, 40k Sears Holdings Corporation (SHLD) Jan-15 70 calls, 40k Sears Holdings Corporation (SHLD) Jan-15 60 calls and 34k JP Morgan Chase & Company (JPM) Feb-13 50 calls. Auto Content (Trade-Alert) 9:01

Movers

Symbol Last Change %Change StdDevs
DQ 13.05 +2.81 +27.4% 4.23
TECUA 7.10 +1.19 +20.1% 7.02
ONP 2.88 +0.41 +16.6% 3.86
BOX 23.07 +2.77 +13.6% 11.23
MTRX 14.82 +1.69 +12.9% 8.41
OIBR 3.87 -0.55 -12.4% 6.53
UPI 2.72 -0.38 -12.3% 7.97
ATNI 44.12 +4.75 +12.1% 8.51
CLSN 7.83 +0.83 +11.9% 2.07
RIMM 17.70 +1.86 +11.7% 1.51

Shakers (Implied volatility Movers)

Symbol IV[30d] IVChg IVChg% SkewAdjChg Last Change
IPXL 41.0% -35.4 -46.4% -35.2 $19.67 -1.35
NRF 32.9% +7.5 +29.7% +4.6 $7.99 +0.18
KSU 19.1% -6.9 -26.7% -4.5 $91.61 +3.98 Post-Earnings
RF 25.2% -8.6 -25.3% -7.9 $7.74 +0.31 Post-Earnings
PKG 20.6% -6.9 -24.9% -7.8 $38.71 -1.31 Post-Earnings
EPB 11.0% -3.5 -24.3% -2.8 $41.50 +0.68
QRE 18.9% -5.5 -22.4% -6.9 $18.43 +0.33
EEP 16.6% +2.8 +20.4% +3.7 $30.56 +0.51
AMTD 16.6% -4.2 -20.3% -2.9 $18.97 +0.52 Post-Earnings
DDD 57.6% +9.5 +19.7% +8.7 $69.65 +3.83

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

52-week Lows
39 new lows: .OVX CPIX DOG DRV DUG DXD ERY FAZ FSA FXP HDGE IACI MIDZ MZZ PLUG QNST RSW RWM SDOW SDS SGG SH SJB SKF SMDD SMN SPXS SPXU SRS SRTY SVM TWM TZA UVXY VIIX VIXM VIXY VXX VXZ

Top Equity Blocks
5.00m CLWR 3.18 +0.01 +0.5% FINRA-ADF 12:23:13 – Derivatively Priced
3.79m ZNGA 2.41 -0.04 -1.6% FINRA-ADF 13:48:40
2.00m SPY 148.48 -0.13 -0.1% FINRA-ADF 10:53:06 – Out of Sequence
1.75m SIRI 3.16 -0.02 -0.6% FINRA-ADF 13:54:38 – Out of Sequence
1.75m SIRI 3.16 FINRA-ADF 10:10:05
1.58m ZNGA 2.41 -0.04 -1.6% FINRA-ADF 14:32:31 – Burst
1.32m CERP 0.02 +0.01 +56.2% 14:11:30
1.24m SPY 148.37 +0.03 +0.0% CHX (MIDWEST) 11:30:01 – Tied to Options
1.18m WLT 36.70 -0.09 -0.2% FINRA-ADF 12:10:36 – Out of Sequence
1.09m USB 32.91 +0.01 +0.0% CHX (MIDWEST) 11:06:58 – Tied to Options

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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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