WhatsTrading.com Options Recap — 02/01/2013

| February 1, 2013 | 0 Comments More



Stocks are rallying around economic news. The headline number showed the economy adding 157,000 jobs for January and 23,000 fewer than expected. The unemployment rate ticked up to 7.9 percent from 7.7 percent and .2 percent more than expected. However, December numbers were revised sharply higher and other data (ISM, Construction Spending, and UofM Sentiment) topped estimates. Elsewhere, global equity markets were mostly higher including gains of more than 1 percent in the UK and France. Crude is up 16 cents to $97.65 and gold gained $8 to $1670. On Wall Street, Merck (MRK) and Exxon (XOM) are the only losers in the Dow on the heels of their respective earnings reports and the industrials are up 145 points. The NASDAQ gained 36 points.

Overall options volumes are respectable today, as the new month kicks off and players take positions for fear of missing the next move in the ongoing rally. With an hour left to trade, the projected volume is 18.3 million contracts. 8.3 million calls and 6.7 million puts so far. The S&P 500 Index (.SPX) is at five year highs and, interestingly, much of flow in SPX options has been on the put side. 502,000 puts and 240,000 calls in the S&P pit so far. Are players unwinding protective positions? I don’t know. The most actives are April and March downside puts. CBOE Volatility Index (.VIX) is down 1.25 to 13.03 and some portfolio managers might see the decline in VIX (in SPX implied volatility), as an opportunity to buy portfolio protection. Beyond that, however, sentiment is bullish and the top trade of the day is a 50,000-lot of April 18 calls on the SPDR Financials (XLF) for 30 cents per contract.

That’s all for this week. We have some big changes on the way at WhatsTrading.com. If you are a regular reader and enjoy the recap, take a test drive of premium. It’s only $7 to try and try out our proprietary Flow Monitor. Send me any questions. Have a great weekend and, if you’re a sports fan, enjoy Super Bowl Sunday!

Notable Flow

TMO – Bullish flow detected in Thermo Fisher Scientific Inc with 8565 calls trading, or 24x the recent avg daily call volume in the name. Shares near $75.4 (3.26) with ATMIV lifting by 1.18 point and 83% of todays call premium trading offer side. (Trade-Alert) 14:01
CRR – Bullish flow detected in CARBO Ceramics with 5638 calls trading, or 19x the recent avg daily call volume in the name. Shares near $89.765 (9.655) with ATMIV lifting by 3.02 point and 72% of todays call premium trading offer side. (Trade-Alert) 13:21

AU – Bullish flow detected in AngloGold Ashanti Ltd with 5330 calls trading, or 3x the recent avg daily call volume in the name. Shares near $29.42 (1.4) with ATMIV lifting by 6.59 point and 74% of todays call premium trading offer side. (Trade-Alert) 13:01

High options volume is being seen in DELL, AIG, STZ, MET, KERX, PPG, MRK, NOV, SD, EXC

Daily Open Interest Update

Thursday’s total option volume of 15.5 million contracts resulted in net open interest growth of 2.52 million calls and 2.51 million puts. Research In Motion Ltd (RIMM), Exxon Mobil Corp (XOM), Ford Motor Company (F) and Bank of America Corporation (BAC) saw the greatest growth. Top five new positions opened include 38k Ford Motor Company (F) Mar-13 13 calls, 31k Exxon Mobil Corp (XOM) Jul-13 87.5 puts, 31k Exxon Mobil Corp (XOM) Jul-13 77.5 puts, 25k Dow Chemical Co (DOW) Jan-14 45 calls and 25k Dow Chemical Co (DOW) Jan-14 40 calls. (Auto Content (Trade-Alert))
Movers

Symbol Last Change %Change StdDevs
BCOV 6.22 -2.20 -26.1% 8.97 Post-Earnings
LTM 39.95 -10.78 -21.2% 18.53
BBW 4.93 +0.83 +20.2% 8.84
KERX 7.46 -1.62 -17.8% 1.21
EDAP 2.97 +0.39 +15.1% 2.78
ABAX 44.13 +5.41 +14.0% 8.17 Post-Earnings
MCOX 2.70 -0.40 -12.9% 1.60
SDR 16.53 -2.38 -12.6% 10.46
OMCL 17.71 +1.91 +12.1% 8.50 Post-Earnings
PMCS 6.46 +0.68 +11.8% 7.85 Post-Earnings

Shakers (Implied volatility Movers)

Symbol IV[30d] IVChg IVChg% SkewAdjChg Last Change
GDOT 49.4% -42.3 -46.1% -40.8 $13.66 +0.26 Post-Earnings
MAT 18.7% -14.2 -43.1% -13.1 $38.16 +0.53 Post-Earnings
AZN 13.4% -9.3 -40.9% -8.7 $48.48 +0.30
PRGO 18.8% -12.7 -40.4% -10.7 $105.76 +5.25 Post-Earnings
CAVM 34.8% -19.9 -36.4% -18.5 $35.62 +2.18 Post-Earnings

TSN 19.8% -9.1 -31.4% -8.0 $22.72 +0.60 Post-Earnings
CTRP 43.0% -18.8 -30.4% -17.9 $20.70 +0.89 Post-Earnings
LEA 24.7% -10.8 -30.3% -10.4 $49.68 +0.68 Post-Earnings
MMR 8.4% -3.3 -28.3% -1.3 $16.00 +0.19
MTW 32.8% -12.8 -28.1% -11.1 $18.77 +1.17 Post-Earnings

52-Week Highs
577 new highs: Too many to list

52-week Lows
46 new lows: .SKA .XDN ATPAQ AVB BCOV BVN BYI CKH CLSN DDMGQ DOG DXD EFU EPV EUO FAZ FXP FXY HDGE HMY IVAC KWK LTM MIDZ MZZ PWE RSW RUSS RWM SCOK SDOW SDS SEF SH SIJ SKF SMDD SOXS SPXS SPXU SRTY TLAB TWM TZA UUP ZN

Top Equity Blocks
@ALL, Benchmark .SPX +0.1%
3.10m SIRI 3.23 +0.09 +2.9% FINRA-ADF 11:46:00
2.60m SIRI 3.22 +0.08 +2.5% FINRA-ADF 11:33:53
2.50m PPG 138.68 +1.11 +0.8% CHX (MIDWEST) 10:48:49 – Tied to Options
2.20m VXX 22.96 -1.43 -5.9% FINRA-ADF 14:17:31 – Average Price Trade
1.92m XRT 67.20 +0.15 +0.2% CHX (MIDWEST) 09:55:08
1.90m XLF 17.63 +0.26 +1.5% CHX (MIDWEST) 11:39:19 – Tied to Options
1.82m MENT 16.90 -0.23 -1.3% FINRA-ADF 12:54:23 – Burst
1.70m S 5.71 +0.09 +1.5% FINRA-ADF 13:59:26 – Out of Sequence
1.56m VOO 69.28 +0.70 +1.0% FINRA-ADF 13:17:04 – Out of Sequence
1.43m LTD 47.95 -0.07 -0.2% FINRA-ADF 09:57:30

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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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