WhatsTrading.com Options Recap — 01/30/2013

| January 30, 2013 | 0 Comments More



Stock market averages have pulled back a bit on disappointing economic news and after Fed officials maintained their pledge for additional bond purchases. Early economic news showed Gross Domestic Product unexpectedly declining at an annual rate of .1 percent in Q4. The decline marks the first quarter of contraction in several years and dumfounded, befuddled, and confounded economist estimates of +1 percent. Stocks opened modestly weaker on the headline, but trading had turned mixed through midday. A report from ADP, showing a larger-than-expected 192K increase in private sector jobs for January, might have helped offset the perplexing GDP report. Yet, stock market averages slipped again in afternoon action, even as the Federal Reserve concluded its meeting on monetary policy and vowed to buy additional securities until the employment situation improves significantly. European markets also finished broadly lower, led by a 3.4 percent drop in Italy’s MIB Index. The euro is up another .5 percent to 1.356 on the dollar, while further weakening in the yen helped Japan’s Nikkei to a 2.3 percent gain. Crude oil is up 41 cents to $97.98 and gold gained $15.3 to $1676.1. On Wall Street, the Dow Jones Industrial Average has dropped 50 points after moving to five-year highs. The NASDAQ dropped 16.5.

Trading in the options market is on the light side today. Projected volume is 15.1 million contracts. With 15 minutes left to trade, 7.35 million calls and 6.82 million puts have traded across all the exchanges. March 116 puts on the iShares Long-term Bond Fund (TLT) are the day’s most active option contract. 58,000 traded and seems to be seeing some rolling from February 120 puts, which traded 50,400 contracts. Conoco Phillips (COP) Aug 47.5 and 57.5 puts are the most active equity options, being driven by bearish spread trading ahead of earnings. But JDSU Uniphase (JDSU), Citrix Systems (CTXS), and Electronics Arts (EA) are seeing bullish trading ahead of their respective reports, due out after the close. Facebook (FB) is also seeing a flurry of pre-earnings action, while RIM (or, should I say, Blackberry), is seeing heavy volume on the heels of its BB10 launch. Lastly, CBOE Volatility Index (.VIX) is showing some signs of life today, up .88 to 14.19. Volumes are light in the VIX pit, however. 318,000 calls and 120,000 puts so far.

Notable Flow

JDSU – Bullish flow detected in JDS Uniphase Corporation with 11283 calls trading, or 5x the recent avg daily call volume in the name. Shares near $12.65 (-0.41) with ATMIV lifting by 1.62 point and 54% of todays call premium trading offer side. (Trade-Alert) 13:41

EA – Bullish flow detected in Electronic Arts Inc with 15877 calls trading, or 4x the recent avg daily call volume in the name. Shares near $15.09 (0.14) with ATMIV lifting by 1.17 point and 62% of todays call premium trading offer side. (Trade-Alert) 13:21

TOT – Bullish flow detected in Total SA with 5426 calls trading, or 4x the recent avg daily call volume in the name. Shares near $54.835 (0.465) with ATMIV lifting by 2.48 point and 85% of todays call premium trading offer side. (Trade-Alert) 13:01

High options volume is being seen in RIMM, CHK, AMZN, COP, QCOM, LVS, KERX, NTAP, WFT, BRCM

Daily Open Interest Update

Tuesday’s total option volume of 16.7 million contracts resulted in net open interest growth of 2.23 million calls and 2.68 million puts. Facebook Inc (FB), Research In Motion Ltd (RIMM), Amazon com (AMZN) and Ford Motor Company (F) saw the greatest growth. Top five new positions opened include 46k Pfizer Inc (PFE) Mar-13 28 calls, 32k AT&T (T) Feb-13 34 puts, 24k Barrick Gold Corporation (ABX) Jan-14 40 calls, 24k Hewlett Packard Co (HPQ) Feb-13 16 puts and 20k US Airways Group Inc (LCC) Mar-13 17 calls. (Trade-Alert)
Movers

Symbol Last Change %Change StdDevs
MERU 3.28 +0.88 +36.7% 11.65 Post-Earnings
VTUS 2.54 -0.74 -22.6% 3.35
VELT 4.24 -1.23 -22.5% 5.97
HTCH 2.81 +0.52 +22.5% 3.73 Post-Earnings
KTCC 9.54 -2.37 -19.9% 8.20 Post-Earnings
MGAM 16.70 +2.41 +16.9% 5.88 Post-Earnings
FSL 14.23 +1.84 +14.9% 7.80 Post-Earnings
CPNO 38.05 +4.92 +14.9% 15.98
IBCP 5.67 +0.68 +13.5% 4.42
UIS 21.44 +2.52 +13.3% 8.08 Post-Earnings

Shakers (Implied volatility Movers)

Symbol IV[30d] IVChg IVChg% SkewAdjChg Last Change
PBI 51.8% +16.3 +46.0% +13.4 $11.93 -0.22 Pre-Earnings
AMZN 28.2% -22.1 -43.9% -18.9 $271.82 +11.47 Post-Earnings
WPZ 17.8% +5.1 +40.8% N/A $50.57 +0.33
UIS 35.9% -22.9 -38.9% -21.0 $21.44 +2.52 Post-Earnings
ISIS 49.1% -31.2 -38.8% -28.5 $14.33 +0.95
NXY 19.4% +5.4 +38.5% +3.3 $26.65 -0.24
CVLT 33.7% -20.8 -38.1% -17.5 $77.34 +6.84 Post-Earnings
DLB 27.1% -14.1 -34.3% -13.6 $32.57 +0.82 Post-Earnings
TRQ 55.7% +13.9 +33.2% +12.2 $7.85 -0.30
HYG 6.7% +1.6 +30.5% N/A $94.15 -0.49

52-Week Highs
319 new highs: .BSZ .EUU .HGX .SPX .SPXPM .SRO .SVO .VSTRP .XDE .XSP .YUK ABV ACIW ACWX ADI ADT AKR ALJ ALL AMJ AMLP ANSS ARG ARII ATO AVY AWH AZPN BCEI BDX BIP BK BLMN BRS BUD CAG CCE CF CFX CHCO CHE CJES CL CMA CMS CNK CPNO CPRT CREE CSL CSOD CUBE CUZ CVH CVLT CVRR CX CZZ DDR DE DIG DISCK DO DRC DTE DTN DVY DXJ DXPE DZK EFA EFC EFG EFV EGAN EMN ENR EOG EPP EQM ERX ESE ESV ETE EVR EWA EWD EWG EWL EWQ EWU EXAR EZU FBP FDP FELE FEZ FF FIW FLS FMX FNGN FULT FXE FXS GIL GILD GIS GKK GLP GPOR GPX GWX HBC HDV HFC HI HLX HMA HNP HOLI HPP HRB HSC HUB/B IAI IBCP IBN IDA IDV IEV IFF IIIN INAP INP IOO IPAR IR ITB ITT IVE IVR IVV IVZ IWB IWD IWF IWS IWV IYE IYH IYJ JAH JEF JLL JNJ JPM K KBE KBH KCE KERX KIE KMB KRG KW LIFE LINTA LL LNG LUX LXP MAN MANH MAPP MAS MCC MCO MDSO MDT MFG MGAM MGC MHK MHP MIDD MITT MKTX MLM MLPN MMM MMP MORN MPC MR MSA MSG MTH MTSC MTW MTX NBL NCT NLSN NU NVO NWL NWS NWSA NYX ORBC OTTR PBF PG PHG PHO PJC PLT POST POWL PPH PRE PRIM PRO PSA PSX PUK PXD PXP QGEN RDY RF RHI RNF RNR ROK ROSE RPAI RSP RSU RWL RYL SAFT SCHB SCHD SCHF SCHG SCHX SCZ SEIC SEMG SFI SHOS SIG SLAB SMLP SMTC SNY SPB SPF SPLV SPXL SPY SRE SSO SSS STR STWD SWIR SXL TCAP TCB TMO TRGP TUP TV TXT UGA UGI UGP UL UPRO UVV VAC VCBI VDE VEA VEU VGK VHS VHT VIAB VLO VOE VOO VPL VRX VSS VT VTI VTV VUG VV VVC VXUS VYM WLK WNR WPC WPPGY WST WTR WXS XL XLE XLP XLV YCS ZION

52-week Lows
29 new lows: .SKA .XDN BTH BVN COOL DUG DXD EFU EFZ EPV ERY EUO FXY HDY HMY IMN IVAC MRCY PKT PWAVQ RSW SATCQ SDS SH SPXS SPXU UPI WAIR ZN

Top Equity Blocks
@ALL, Benchmark .SPX +0.1%
2.00m BP 45.20 -0.10 -0.2% FINRA-ADF 11:25:09 – Average Price Trade
1.79m MSPD 4.89 -0.04 -0.8% FINRA-ADF 14:57:30
1.69m AES 10.77 +0.11 +1.0% FINRA-ADF 13:00:37 – Burst
1.58m CIM 3.00 +0.03 +1.0% FINRA-ADF 11:16:47
1.50m AES 10.77 +0.11 +1.0% FINRA-ADF 13:00:42
1.50m DCT 7.05 -0.06 -0.8% FINRA-ADF 10:04:31
1.42m NOK 4.13 -0.09 -2.1% CHX (MIDWEST) 11:04:51 – Tied to Options
1.37m AES 10.77 +0.11 +1.0% FINRA-ADF 13:00:28
1.14m EEM 44.27 -0.08 -0.2% CHX (MIDWEST) 09:48:02 – Tied to Options
1.06m NTAP 36.25 +0.38 +1.1% CHX (MIDWEST) 11:37:55 – Tied to Options

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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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