WhatsTrading.com Options Recap — 02/05/2013

| February 5, 2013 | 0 Comments More



Stock market averages rebounded early and have recovered nearly all of the losses suffered the day before. The Dow Jones Industrial Average dropped 130 points yesterday and suffered its biggest loss so far in 2013 on renewed concerns about Europe after yields rose in Spain and Italy. While Asia’s equity markets followed suit and suffered losses overnight, stock benchmarks ticked higher in Europe and the euro recovered .5 percent to 1.358 on the dollar. Crude oil prices rose 44 cents to $96.61. Gold and Treasury bonds are seeing modest losses. On the economic front, the only stat of the day showed ISM Services Index down to 55.2 for January, from 55.7 and below estimates of 55.6. There was little reaction to the data. Instead, stocks were broadly higher through midday and gathered additional momentum in afternoon action. The Dow is now up 129 points and the NASDAQ added 36.

Overall options volumes are light and projected to be about 14.5 million contracts. 6.6 million calls and 6 million puts traded across the exchanges so far. Options on SPDR Financials (XLF) are busy, with large blocks of puts traded as part of bearish spreads in the morning hours. A half million options traded in XLF. A number of names, like Baidu (BIDU), Yum Brands (YUM), and Arch Coal (ACI), are seeing higher flows in the wake of their profit reports. Zynga (ZNGA), Chipotle (CMG), and Disney (DIS) are seeing increasing pre-earnings options volumes. Virgin Media (VMED) saw a flurry of activity, as the stock rallied on reports of a possible transaction with Liberty Global (LBTYA). Lastly, implied volatility across the options market is lower almost across the board. CBOE Volatility Index (.VIX) is up 1.20 to 13.47 and has surrendered much of the 1.77 points scored the day before.

Notable Flow

HK – Bullish flow detected in Halcon Resources Corporation with 10673 calls trading, or 5x the recent avg daily call volume in the name. Shares near $8.15 (0.47) with ATMIV lifting by 4.17 point and 74% of todays call premium trading offer side. Auto Content (Trade-Alert) 13:01

PLX – Bullish flow detected in Protalix BioTherapeutics Inc with 2800 calls trading, or 29x the recent avg daily call volume in the name. Shares near $6.5 (1.14) with ATMIV lifting by 27.08 point and 70% of todays call premium trading offer side. Auto Content (Trade-Alert) 12:21

ECA – Bullish flow detected in Encana Corporation with 11028 calls trading, or 5x the recent avg daily call volume in the name. Shares near $19.079 (0.009) with ATMIV lifting by 1.54 point and 89% of todays call premium trading offer side. Auto Content (Trade-Alert) 12:01

High options volume is being seen in XLF, BIDU, YUM, SD, ZNGA, PBR, MRK, WFT VMED, EWJ

Daily Open Interest Update

Monday’s total option volume of 13.9 million contracts resulted in net open interest growth of 2.15 million calls and 2.21 million puts. Research In Motion Ltd (BBRY), Apple Inc (AAPL), Facebook Inc (FB) and Dell Inc (DELL) saw the greatest growth. Top five new positions opened include 22k Dell Inc (DELL) Mar-13 14 calls, 21k Ford Motor Company (F) Mar-13 13 calls, 20k Delphi Automotive Plc (DLPH) May-13 40 calls, 16k Las Vegas Sands Corp (LVS) Mar-13 55 calls and 16k McMoRan Exploration Co (MMR) May-13 16 calls. (Trade-Alert)
Movers

Symbol Last Change %Change StdDevs
VMED 45.48 +6.79 +17.5% 18.36 Pre-Earnings
PLX 6.21 +0.85 +15.9% 9.29
REV 17.87 +2.37 +15.3% 12.14 Post-Earnings
CACH 3.30 +0.43 +15.0% 3.20
NBIX 10.61 +1.25 +13.4% 8.14
DCIX 6.08 -0.84 -12.1% 8.50
ACI 6.13 -0.80 -11.5% 3.82 Post-Earnings
FSM 4.67 +0.47 +11.3% 3.55
UVXY 10.74 -1.36 -11.2% 1.75
POWI 42.39 +4.21 +11.0% 9.03 Post-Earnings
Shakers (Implied volatility Movers)

Symbol IV[30d] IVChg IVChg% SkewAdjChg Last Change
CSC 22.8% -24.4 -51.8% -20.8 $46.09 +4.18 Post-Earnings
DELL 13.7% -13.5 -49.7% -12.4 $13.43 +0.15
ARR 36.1% +12.0 +49.7% N/A $7.16 +0.04
VMED 42.4% +13.3 +45.8% N/A $45.42 +6.73 Pre-Earnings
SWI 30.3% -23.2 -43.3% -24.6 $52.87 -3.04 Post-Earnings
EL 21.8% -13.5 -38.3% -12.6 $64.55 +3.50 Post-Earnings
YUM 24.4% -12.4 -33.6% -13.1 $61.87 -2.07 Post-Earnings
SIMO 43.0% -21.6 -33.4% -20.3 $14.95 +0.35 Post-Earnings
LBTYA 27.9% +6.9 +33.0% +4.9 $67.88 -1.58
ARMH 28.7% -13.8 -32.4% -11.2 $43.84 +1.89 Post-Earnings

52-Week Highs
289 new highs: .BSZ .HGX .OEX .SPX .SPXPM .SRO .XDE .XEO .XSP .YUK AAON AAT ABG ACM ADI ADP AEIS AER AFCE AFSI AGM AIMC AKR ALTE AMJ AMWD ANSS ARCC ARG ARMH ASR AXS BAX BCEI BDX BEAV BG BHE BKCC BLK BLX BMY BRS CAG CAH CAM CBI CCK CHD CI CLDX CMS CNI CNK COBZ COG COR CR CSC CSL CTGX CVRR CXS CYH CZZ DAKT DCT DK DKL DOV DPS DSPG DTE DTN DXJ DXPE EDAP EFC EFX EGAN EGP EL ENH ENR EQY ETN EV EVR EXAR EXH EXR FAS FBP FDX FFCH FIG FII FLO FLT FMC FR FRC FUN GEL GILD GLT GPC GRT GS HBIO HCA HF HFC HIW HON HPP HRL HSH HUB/B HUBG IAI ICE IDA IFF IHF IIIN IP IR IVE IVV IWB IWD IWS IYF IYG JAH JBHT JDSU JEF JKHY JLL JNJ JPM K KBE KBWB KCE KKR KMB KNL KRC KSU KVHI LAD LAMR LAZ LEG LFUS LNG LPNT MAN MAT MBT MDU MEI MFG MGC MGV MIDD MLI MMC MNTX MPC MSI MTD MWIV NBIX NBL NDSN NFG NFLX NNI NR NU NVO NVS NWL NXST NYX OAS OCN OCR OEF OMX OPXA ORCC OZRK PACW PAG PBF PBH PDCE PG PIR PJC PKY PRAA PSA PSB PXP QDEL R RBC RCI RDN REV RF RHI RJF ROK RPAI RSO RSP RTI SAH SATS SBGI SBS SCHD SCHX SDLP SEIC SGI SHAW SHOS SIRO SIVB SKT SPB SPXL SPY SRE SSO SSW STKL TA TAL TCAP TEL TFSL TFX THC TM TRMB TSN TSO TUES TVL TWTC UCBI UHAL UHS UIS UNS UPRO UYG VDC VIG VIVO VLO VMED VMI VOE VOO VTV VV VVC VYM WAG WES WNR WPC WRI WTR XLP XRT YCS YMI ZION

52-week Lows
25 new lows: .XDN AUMN AVB BVN DEER DXD FAZ FXY GLDX HDGE KWK MRCY PBR RVM SATCQ SDR SDS SH SKF SOXS SPXS SPXU TLAB UDR YUM

Top Equity Blocks
@ALL, Benchmark .SPX +0.1%
11.9m BAC 11.80 +0.32 +2.8% FINRA-ADF 11:02:58
4.92m VWO 44.30 +0.02 +0.0% FINRA-ADF 10:25:04 – Burst
4.31m VWO 44.29 +0.01 +0.0% FINRA-ADF 11:42:47 – Burst
3.84m XRT 67.30 +0.93 +1.4% CHX (MIDWEST) 11:39:37
3.74m DELL 13.39 +0.12 +0.9% FINRA-ADF 12:47:05
3.49m NWSA 28.22 +0.28 +1.0% FINRA-ADF 13:58:14 – Derivatively Priced
3.00m SIRI 3.16 -0.01 -0.2% FINRA-ADF 14:14:00
2.80m DELL 13.38 +0.11 +0.8% FINRA-ADF 12:22:44
2.70m XLF 17.54 +0.13 +0.7% FINRA-ADF 10:32:15
2.52m DELL 13.37 +0.10 +0.8% FINRA-ADF 10:14:08 – Burst

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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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