WhatsTrading.com Options Recap — 02/07/2013

| February 7, 2013 | 0 Comments More



Stock market averages slumped on disappointing economic data and weakness across Eurozone markets Thursday. Jobless claims declined by 5,000 to 366,000 last week. Economists were expecting a larger drop to 360,000. Separately, a report on fourth quarter productivity was down 2 percent. A 1.2 percent decline was expected. Market averages opened steady despite the data, but sellers surfaced mid-morning after the euro faltered and Eurozone equity markets slid on the heels of the latest commentary from ECB President Mario Draghi. Although he didn’t seem to deliver any surprises, there wasn’t much optimism spewing from the lips of the head of Europe’s Central Bank. Stock market averages finished broadly lower across the Eurozone and the euro lost .9 percent to 1.34 on the dollar. Crude slid 91 cents to $95.71 per barrel and gold gave back morning gains. The yellow metal is off $7 to $1672. On Wall Street, the Dow Jones Industrial Average was down triple digits midday, but has pared its losses and is down just 45 points. The NASDAQ dropped 14 points.

Overall options volumes are light today and projected to be less than 15 million contracts. With 35 minutes left to trade, 6.6 million calls and 6.4 million puts traded across the exchanges. Green Mountain Coffee Roasters (GMCR0 is down $2.75 to $46.19 in the wake of its earnings release and more than 173,000 options traded on the stock. Weekly 45 puts and 47.5 calls, expiring after tomorrow, are the most actives in the name. The largest equity options trades of the day are in Elan (ELN) after an investor sold 50,000 Jan 10 puts on the stock at $1.15, sold 25,000 Jan 10 calls at $1, and sold 25,000 Jan 12 calls at 45 cents, apparently opening a new straddle/strangle play on the stock and looking for shares to hold around $10 through the remainder of 2013. Another noteworthy trade is a buyer of 50,000 Apr 84 – 86 put spreads on the Small Cap ETF (IWM) at 45 cents per spread. CBOE Volatility Index (.VIX) is up .40 to 13.81, but implied volatility is a mixed across the options market today. We’ve also seen increased call activity in a number of casino names, in the energy sector, and Boeing. Take a test drive of our Premium service, along with WhatsTrading.com’s proprietary Flow Monitor, for only $7 and see all of today’s color. You can cancel any time directly from the web site.

Notable Flow

WM – Bullish flow detected in Waste Management with 18892 calls trading, or 5x the recent avg daily call volume in the name. Shares near $36.65 (0.55) with ATMIV lifting by 3.75 point and 81% of todays call premium trading offer side. (Trade-Alert) 14:01
BYD – Bullish flow detected in Boyd Gaming Corp with 7011 calls trading, or 6x the recent avg daily call volume in the name. Shares near $7.339 (0.429) with ATMIV lifting by 13.79 point and 62% of todays call premium trading offer side. (Trade-Alert) 13:41

NXY – Bearish activity detected in Nexen Inc with 10200 puts trading, or 4x the recent avg daily put volume in the name. Shares near $26.57 (-0.13) with ATMIV lifting by 1.76 point and 59% of todays put premium trading offer side. (Trade-Alert) 12:51

High options volume is being seen in GMCR, ELN, NOV, LNKD, AKAM, SD, CSTR, ANF, GPS, SWY

Daily Open Interest Update

Wednesday’s total option volume of 16.7 million contracts resulted in net open interest growth of 2.02 million calls and 2.28 million puts. Green Mountain Coffee Roasters Inc (GMCR), Bank of America Corporation (BAC), United Continental Holdings Inc (UAL) and Electronic Arts Inc (EA) saw the greatest growth. Top five new positions opened include 20k Triquint Semiconductor Inc (TQNT) Feb-13 4 puts, 19k Electronic Arts Inc (EA) Mar-13 17 calls, 17k Delta Air Lines Inc (DAL) Jan-14 12 puts, 17k Suncor Energy Inc (SU) Mar-13 34 calls and 16k Cisco Systems Inc (CSCO) Feb-13 20 puts. (Trade-Alert)
Movers

Symbol Last Change %Change StdDevs
VSAT 48.54 +8.80 +22.1% 14.91 Post-Earnings
TRLG 28.72 +4.97 +20.9% 18.28 Post-Earnings
GEOS 111.04 +17.22 +18.4% 12.29 Post-Earnings
OXGN 5.11 +0.72 +16.4% 6.56
AKAM 34.96 -6.62 -15.9% 14.68 Post-Earnings
CZR 9.84 +1.35 +15.9% 3.89
DV 30.23 +4.11 +15.7% 8.81 Post-Earnings
RTIX 4.00 -0.74 -15.7% 5.95 Post-Earnings
EPAX 4.55 -0.80 -15.0% 8.58 Post-Earnings
ATML 6.14 -1.00 -14.0% 6.52 Post-Earnings

Shakers (Implied volatility Movers)

Symbol IV[30d] IVChg IVChg% SkewAdjChg Last Change
GMCR 46.7% -46.8 -50.0% -45.7 $46.58 -2.36 Post-Earnings
TRLG 36.5% -32.4 -47.0% -22.1 $28.72 +4.97 Post-Earnings
LNCO 22.2% +6.7 +43.3% +1.0 $38.22 -0.58
AKAM 32.0% -21.5 -40.2% -33.4 $34.96 -6.62 Post-Earnings
IACI 33.0% -21.9 -39.9% -20.2 $43.87 +0.86 Post-Earnings

DV 39.4% -25.5 -39.3% -24.1 $30.23 +4.11 Post-Earnings
EXC 20.2% -11.7 -36.6% -9.9 $31.54 +0.56 Post-Earnings
LF 60.1% -32.8 -35.3% -31.1 $8.96 -0.04 Post-Earnings
NTES 28.8% -15.1 -34.3% -13.0 $48.87 +3.24 Post-Earnings
CBG 24.4% -11.4 -31.8% -10.1 $23.77 +1.92 Post-Earnings

52-Week Highs
NA

52-week Lows
NA

Top Equity Blocks
@ALL, Benchmark .SPX +0.1%
5.00m S 5.70 -0.07 -1.2% FINRA-ADF 14:07:47
4.55m OZM 10.03 -0.69 -6.4% FINRA-ADF 13:17:29 – Burst
4.30m NOK 4.07 -0.04 -1.0% FINRA-ADF 12:49:52 – Average Price Trade
3.13m CSCO 21.20 -0.10 -0.5% FINRA-ADF 11:05:02 – Out of Sequence
3.01m SPY 151.26 -0.72 -0.5% FINRA-ADF 12:43:33 – Derivatively Priced
2.61m INTC 20.97 -0.21 -1.0% FINRA-ADF 11:06:00 – Out of Sequence
2.00m S 5.70 -0.07 -1.2% FINRA-ADF 13:56:30
2.00m S 5.70 -0.07 -1.2% FINRA-ADF 13:30:45
2.00m S 5.69 -0.08 -1.4% FINRA-ADF 11:56:27
2.00m NWSA 27.44 -0.78 -2.8% FINRA-ADF 10:53:43

Tags: , ,

Category: Market Update

Please share if others would benefit

Leave a Reply

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®