WhatsTrading.com Options Recap — 02/06/2013

| February 6, 2013 | 0 Comments More



Stock market averages bounced around a bit in the morning session, but aren’t much changed heading into the closing bell. With no economic stats to guide the action, investors digested another barrage of mixed earnings reports from the likes of Time Warner (TWX), Zynga (ZNGA), Disney (DIS), and many others. The overall news failed to inspire and, while Japan’s Nikkei continued its recent surge and gained 3.8 percent overnight, trading across the Eurozone turned sluggish and the euro dropped .5 percent to 1.352 on the buck. Crude oil slid early, but then found some support from weekly inventory data and is up 8 cents to $97.72 per barrel. Gold gained $5 to $16785. On Wall Street, the Dow Jones Industrial Average is now flat. The NASDAQ dropped 5.8 points.

Overall options volumes are active and being boosted by ex-dividend trading in Exxon Mobile (XOM), Blackstone (BX) and a handful of others. Projected volume is almost 17 million contracts. Stripping out ex-dividend action, only 6 million calls and 5.5 million puts traded across the exchanges. But two of the international ETFs have seen large blocks of options traded. A hefty February 44 – March 43 put spread trades on the iShares Emerging Markets Fund (EEM) for 8 cents, 100000X and an April 57 – Dec 68 risk reversal traded on the iShares MSCI EAFA Fund (EFA), 130000X. Like the big put spread in the SPDR Financials (XLF) yesterday, these appear to be short-term bearish trades or maybe some hedging activity on concerns about declines in the world’s equity markets in the weeks/months ahead.

Beyond that, a lot of the flow in individual names is earnings related. Zynga (ZNGA) is seeing high volumes as the stock zips higher on its results. Disney (DIS), Chipotle (CMG), and Genworth (GNW) are also seeing increased options activity on the heels of their respective earnings reports. Green Mountain (GMCR), Verizon (VZ) and Akamai (AKAM) are seeing increased pre-earnings options action. Lastly, VIX is down .06 to 13.66, but most of the individual equity volatility indexes (VXAPL, VXGS, VXGOG) are ticking higher.

Notable Flow

SNE – Bearish activity detected in Sony Corporation with 9036 puts trading, or 5x the recent avg daily put volume in the name. Shares near $15.715 (-0.115) with ATMIV lifting by 2.91 point and 60% of todays put premium trading offer side. (Trade-Alert) 14:11

IGT – Bullish flow detected in International Game Technology with 7694 calls trading, or 4x the recent avg daily call volume in the name. Shares near $15.8299 (0.1899) with ATMIV lifting by 1.06 point and 69% of todays call premium trading offer side. (Trade-Alert) 14:21

STR – Bullish flow detected in Questar Corp with 7254 calls trading, or 3x the recent avg daily call volume in the name. Shares near $23.265 (0.005) with ATMIV lifting by 2.58 point and 93% of todays call premium trading offer side. (Trade-Alert)

High options volume is being seen in BX, XOM, EFA, ZNGA, GMCR, NYCB, LCC, CMG, GRA, EWJ

Daily Open Interest Update

Tuesday’s total option volume of 14.4 million contracts resulted in net open interest growth of 1.92 million calls and 2.46 million puts. Virgin Media Inc (VMED), Facebook Inc (FB), Petroleo Brasileiro ADR (PBR) and Apple Inc (AAPL) saw the greatest growth. Top five new positions opened include 40k Sprint Nextel Corporation (S) Apr-13 6 calls, 35k Weatherford International Ltd (WFT) Apr-13 14 calls, 32k Dell Inc (DELL) Apr-13 14 calls, 20k Sandridge Energy Inc (SD) Sep-13 7 puts and 17k Pitney Bowes Inc (PBI) Jul-13 8 puts. (Trade-Alert)
Movers

Symbol Last Change %Change StdDevs
IGOI 3.93 +0.73 +22.8% 5.18
SFLY 40.36 +6.77 +20.2% 13.84 Post-Earnings
GDP 12.59 +1.97 +18.5% 5.90
KFRC 15.82 +2.30 +17.0% 18.73 Post-Earnings
VOCS 14.98 -2.76 -15.6% 8.04
MBI 10.15 +1.32 +14.9% 4.60
TTWO 14.49 +1.83 +14.5% 5.85 Post-Earnings
CVU 9.88 -1.66 -14.4% 11.43
SSH 7.77 +0.96 +14.0% 4.13
CACH 3.80 +0.46 +13.8% 2.55

Shakers (Implied volatility Movers)

Symbol IV[30d] IVChg IVChg% SkewAdjChg Last Change
EXPE 32.2% -24.9 -43.6% -24.9 $65.45 -2.05 Post-Earnings
SFLY 35.9% -24.3 -40.4% -19.0 $40.36 +6.77 Post-Earnings
CERN 21.8% -14.4 -39.8% -13.5 $85.25 +1.65 Post-Earnings
CMG 26.6% -17.3 -39.4% -13.9 $321.97 +16.96 Post-Earnings
HAIN 34.6% -21.0 -37.8% -21.0 $57.62 -1.78 Post-Earnings

RL 24.5% -13.5 -35.6% -11.5 $174.75 +9.84 Post-Earnings
RBN 10.6% +2.8 +35.3% +2.4 $59.08 +0.00
PNRA 25.7% -13.9 -35.0% -12.8 $165.08 +2.11 Post-Earnings
VMED 18.1% -9.4 -34.3% -9.4 $45.02 -0.59 Post-Earnings
INFN 46.3% -20.5 -30.7% -21.7 $6.80 -0.71 Post-

52-Week Highs
240 new highs: .YUK AAON ACM ADI AEIS AFCE AFSI AGCO AGN AGO AKR ALE ALTE ANSS APH AUDC AXS BAX BCEI BEAV BIIB BIP BMR BNS BRS CBI CBOE CCK CLDT CLDX CLX CMCO CNI COG COO CPTS CR CREE CSV CTGX CXS DAL DIS DK DOV DPS DSPG DTN DVA DXJ EFC EMKR EOG EPL EPM EQY EV FAS FBRC FBT FDX FF FFIN FII FNP FRC FTC FUN FXZ GEOS GNRC GRA HBIO HITT HIW HLX HMA HRB HSH HSIC HTHT ICE ICGE IEO IJH IJK IWR IWS IYF IYG JACK JAH JDSU JEF JKHY JLL JNJ JPM KBE KCE KFRC KFY KIM KKR KMX KRC KRE KUB LAZ LEA LGF LSE LUB MAN MAT MDY MEAS MEI MFG MIDD MIDU MIPS MLI MMC MMM MNTX MOV MPC MSG MTD MTZ MUSA MVV NBL NCT NFG NFLX NLS NNI NSR NVO NVS NWL NXST NYX OCN OCR OILT OZRK PAC PAG PBF PCEF PDCE PDP PENN PIKE PIR PKY POWI POWL PSA PSB PTEN PVH PVTB PXD PXP QDEL R RAS RCI RDN RE REV RF RHI RHP RKT RS RTI RTK RY RYAAY SAH SBGI SCHM SEH SEIC SEMG SFLY SHAW SIAL SIM SIRO SKM SKT SNPS SPB SRT SSP SSW STE SYMC SYY TAL TBI TCAP TEL TFX TGH TM TMH TRIP TRN TSN TSO TU TVL TWX UHAL UMDD UYG VAC VHT VOE VOT WAGE WAL WES WOR WPC WRC WRI WTR WYN XRT XTXI YCS ZION

52-week Lows
20 new lows: ATPAQ AUMN ELN FAZ FXY GLDX HDGE MRCY MZZ PBR PLUG PVG RBY SATCQ SCHSQ SIJ SKF SMDD SOXS URRE

Top Equity Blocks
@ALL, Benchmark .SPX +0.1%
5.91m EFA 58.44 -0.21 -0.4% CHX (MIDWEST) 10:30:47 – Tied to Options
5.00m SPY 151.12 +0.13 +0.1% FINRA-ADF 12:32:45 – Average Price Trade
3.83m EWJ 9.98 +0.06 +0.6% FINRA-ADF 10:00:37
3.76m SPY 151.12 +0.09 +0.1% FINRA-ADF 12:40:42 – Derivatively Priced
3.50m DELL 13.48 +0.07 +0.5% FINRA-ADF 13:51:12
3.00m SPY 151.12 +0.12 +0.1% FINRA-ADF 12:40:05 – Derivatively Priced
3.00m NOK 4.08 +0.09 +2.3% FINRA-ADF 11:35:52 – Average Price Trade
2.69m CIM 3.10 +0.03 +1.0% FINRA-ADF 12:19:27
2.50m S 5.67 -0.04 -0.6% FINRA-ADF 11:54:41
2.00m DELL 13.47 +0.05 +0.4% FINRA-ADF 13:15:26

Tags:

Category: Market Update

[mp_share_center type="cta"] [mp_share_center type="boxes"]

Leave a Reply

You must be logged in to post a comment.

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.

s2Member®