WhatsTrading.com Options Recap — 01/25/2013

| January 25, 2013 | 0 Comments More



Investors shrugged off a disappointing reading on homes sales and the bullish underlying tone continues Friday. The report, released 30 minutes into trading, showed sales of new homes falling to an annual rate of 369K, from 398K and below expectations of 385K. The negative reaction to the data was short-lived and market averages had moved higher into midday. From there, action has been a bit choppy and rangebound heading into the weekend. Japan’s Nikkei was a noteworthy mover overnight, gaining 2.8 percent, and European markets were steady on German confidence data. Crude oil recovered early losses and is up a nickel to $96. Gold gave back another $12.5 to $1657.5 The Dow Jones Industrial Average is being led by a 3.4 percent post-earnings gain in PG. The Dow is up 55 points and moving higher for the eleventh time in 12 days. The NASDAQ has added 21 despite further carnage in AAPL, which fell to fresh 52-week lows and is down 1 percent to $445.

With 25 minutes left to trade, projected volume is about 18.4 million contracts, which is off yesterday’s pace, but still well above the recent daily average. I spent the last two days attending panels at the Securities Traders Assoc of Chicago [STAC] Winter Conference and didn’t get the usual number of notes out today. There’s much talk among participants at the conference about the changing market structure and how fragmented the market has become.

There are now 11 different exchanges making markets in puts and calls. Soon, there will be a dozen. Fortunately, we have access to data from all them and use the information to help you make sense of what’s going on across the entire market. That includes the big block trades, like we saw in IYR and XRT over the past two days. The increased interest in CBOE Volatility Index (.VIX) and newly listed products. The sweeps of puts and calls that are lifted electronically across multiple exchanges. The big swings in implied volatility in individual tickers or across the market. We strive to provide objective and timely information that you, if you already know and understand the options product, can you need to make better investment decisions and manage risk in today’s changing markets. Stay tuned. Big changes are in the works. Thank you very much for reading and have a wonderful, safe weekend.

Notable Flow

CX – Bearish activity detected in Cemex SaB De Cv with 10022 puts trading, or 4x the recent avg daily put volume in the name. Shares near $10.69 (-0.1) with ATMIV lifting by 1.11 point and 100% of todays put premium trading offer side. (Trade-Alert) 10:31

COP – Bullish flow detected in ConocoPhillips with 34275 calls trading, or 6x the recent avg daily call volume in the name. Shares near $60.67 (0.26) with ATMIV lifting by 1.29 point and 72% of todays call premium trading offer side. (Trade-Alert) 10:41

HIG – Bearish activity detected in Hartford Financial Services Group Inc with 4103 puts trading, or 2x the recent avg daily put volume in the name. Shares near $24.4031 (0.0131) with ATMIV lifting by 1.22 point and 66% of todays put premium trading offer side. (Trade-Alert)
High options volume is being seen in F, MSFT, NFLX, IYR, KEY, GDX, PG, MCP CAT, PPG

Daily Open Interest Update

Thursday’s total option volume of 20.1 million contracts resulted in net open interest growth of 3.61 million calls and 3.96 million puts. Microsoft Corp (MSFT), Apple Inc (AAPL), Dow Chemical Co (DOW) and Research In Motion Ltd (RIMM) saw the greatest growth. Top five new positions opened include 50k Dow Chemical Co (DOW) Jan-14 40 calls, 49k Dow Chemical Co (DOW) Jan-14 45 calls, 29k Apple Inc (AAPL) 1/25 weekly 470 calls, 24k PPG Industries Inc (PPG) Feb-13 180 calls and 23k PPG Industries Inc (PPG) Feb-13 180 puts. (Trade-Alert) 9:01
Movers

Symbol Last Change %Change StdDevs
OSK 40.90 +6.32 +18.3% 8.92 Post-Earnings
OCZ 2.38 +0.36 +17.8% 5.77
SCSS 23.25 -4.95 -17.6% 7.42 Post-Earnings
NFLX 168.25 +21.39 +14.6% 1.79
RSH 2.64 +0.33 +14.3% 4.20
SCSC 29.14 -4.85 -14.3% 9.95 Post-Earnings
SRPT 27.85 +3.46 +14.2% 4.23
LSCC 4.45 +0.55 +14.1% 6.79 Post-Earnings
EFII 22.70 +2.78 +14.0% 12.15 Post-Earnings
MCP 8.03 +0.96 +13.6% 1.70

Shakers (Implied volatility Movers)

Symbol IV[30d] IVChg IVChg% SkewAdjChg Last Change
FMCN 17.0% -16.5 -49.2% -11.5 $25.42 +0.43
TPX 38.4% -33.6 -46.7% -32.4 $40.66 +2.31 Post-Earnings
SBUX 19.0% -14.4 -43.1% -13.9 $57.09 +2.52 Post-Earnings
SYNA 29.5% -21.7 -42.3% -17.1 $36.49 +3.94 Post-Earnings
SCSS 39.9% -28.9 -42.0% -34.1 $23.22 -4.98 Post-Earnings

VRSN 20.1% -13.9 -40.9% -11.5 $43.26 +3.27 Post-Earnings
RMD 25.7% -14.8 -36.7% -14.0 $48.02 +2.55 Post-Earnings
JNPR 29.3% -16.1 -35.4% -14.8 $22.52 +1.02 Post-Earnings
OTEX 24.0% -13.1 -35.3% -13.0 $59.47 -0.33 Post-Earnings
NFLX 69.7% +17.9 +34.5% +18.4 $168.25 +21.39

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

52-week Lows
49 new lows: .AVSPY .XDN AAPL ANV AU BAA DDMGQ DOG DPK DRV DUG DXD EFZ EPV ERY EUO EXK FSA FSG FXY GLDX HDGE HMY IAG IMMU IMN MIDZ MLNK MZZ PGH RSW RUSS RWM SCOK SDOW SDS SH SIJ SJB SKUL SMDD SOXS SPXS SPXU SRS SRTY TWM TZA ZN

Top Equity Blocks
@ALL, Benchmark .SPX +0.1%
4.00m CIM 3.00 +0.03 +1.0% FINRA-ADF 14:31:20
3.98m XLK 29.36 +0.10 +0.3% FINRA-ADF 11:15:48
3.82m GRPN 5.28 +0.10 +1.9% FINRA-ADF 11:39:11 – Burst
2.51m SPY 149.37 +0.72 +0.5% FINRA-ADF 14:30:31 – Derivatively Priced
2.08m MU 8.02 +0.19 +2.4% FINRA-ADF 10:32:24
2.00m NOK 4.14 -0.12 -2.8% FINRA-ADF 13:06:34 – Seller
1.81m MGM 13.01 -0.01 -0.0% CHX (MIDWEST) 12:15:17 – Tied to Options
1.78m CIM 3.00 +0.03 +1.0% FINRA-ADF 14:25:08
1.70m CIM 3.00 +0.03 +1.0% FINRA-ADF 14:46:52
1.60m DELL 13.19 +0.19 +1.5% FINRA-ADF 12:09:26

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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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