WhatsTrading.com Options Recap — 02/20/2013

| February 20, 2013 | 0 Comments More



With uneventful trading in overseas markets, early focus was on Housing Starts. The headline number showed a sharp drop to 890K for January, from 973K and below expectations of 914K. However, Building Permits, a better gauge of future activity, was up to 925K, from 909K and better than the 918K that was expected. Separately, PPI was up .2 percent in January and roughly in-line with expectations. Earnings news is mixed. While Toll Brothers (TOL) and Herbalife (HLF) are lower in the wake of their results, MGM and DELL held slim gains. Crude oil has fallen sharply in recent trade, down $2.36 to $94.74, and the drop in gold is eye-popping as well. The metal is off $25 to $1579 and falling to levels not seen since the middle of last year. On Wall Street, the Dow Jones Industrial Average and the NASDAQ are both down 22 points. Focus now turns to FOMC minutes. The question is if and when will monetary officials turn off the spigot on massive monetary easing. Minutes from December meeting hinted at a possible end by summer 2013.

Overall options volumes reflect the more cautious underlying tone Wednesday. 5.8 million calls and 5.1 million puts traded. A half a million calls have traded in GE, but that’s due to ex-dividend trading. Another 185K contracts traded in UPS due ex-div action. Stripping out those two names, there’s roughly equal numbers of puts and calls traded across the exchanges today. Implied volatility is higher almost marketwide. VIX set a new 5-year closing low yesterday and is up .93 to 13.24. VXAPL, which tracks the vols of Apple options, is up 1.45 to 30.87. GVX (gold – GLD – implied vols) rallied 1.17 to 16.92 and OVX (oil – USO – implied volatility) jumped 2.41 points to 24.85).

Notable Flow
AWAY – Bullish flow detected in HomeAway Inc with 2095 calls trading, or 2x the recent avg daily call volume in the name. Shares near $25.53 (0.46) with ATMIV lifting by 3.39 point and 80% of todays call premium trading offer side. (Trade-Alert) 13:01

AON – Bullish flow detected in Aon PLC with 2205 calls trading, or 6x the recent avg daily call volume in the name. Shares near $59.34 (1.43) with ATMIV lifting by 1.01 point and 81% of todays call premium trading offer side. (Trade-Alert) 12:41

LPX – Bearish activity detected in Louisiana Pacific Corp with 2862 puts trading, or 5x the recent avg daily put volume in the name. Shares near $21.605 (-0.295) with ATMIV lifting by 2.54 point and 97% of todays put premium trading offer side. (Trade-Alert) 12:31
High options volume is being seen in GE, UPS, HAL, XLB, TSM, SLW, JOY, SNV, ODP, AU

Daily Open Interest Update

Tuesday’s total option volume of 15.1 million contracts resulted in net open interest growth of 3.21 million calls and 2.98 million puts. Blackstone Group LP (BX), Facebook Inc (FB), Bank of America Corporation (BAC) and Apple Inc (AAPL) saw the greatest growth. Top five new positions opened include 115k Blackstone Group LP (BX) Jan-15 30 calls, 46k H J Heinz Company (HNZ) Jun-13 75 calls, 41k CBS Corp (CBS) Jun-13 50 calls, 40k Tesoro Corporation (TSO) Apr-13 65 calls and 20k Avon Products Inc (AVP) Jul-13 24 calls. Trade-Alert
Movers

Symbol Last Change %Change StdDevs
HNR 5.56 -3.60 -39.3% 29.43
MM 9.10 -5.23 -36.5% 9.66 Post-Earnings
NTSP 15.82 +3.53 +28.7% 10.92
CRTX 6.69 +1.19 +21.6% 17.63
GMXR 2.70 -0.59 -17.9% 1.75
ANAD 2.35 -0.45 -16.1% 5.18 Post-Earnings
LZB 17.89 +2.43 +15.7% 11.23 Post-Earnings
ODP 4.28 -0.74 -14.8% 5.07
ONCY 4.02 -0.65 -13.9% 2.24
MITK 4.19 -0.67 -13.8% 3.03

Shakers (Implied volatility Movers)

Symbol IV[30d] IVChg IVChg% SkewAdjChg Last Change
MDRX 32.8% -19.2 -36.9% -18.4 $12.68 +1.50 Post-Earnings
LL 30.0% -15.3 -33.8% -14.1 $64.50 +2.07 Post-Earnings
GRMN 27.9% -14.2 -33.7% -15.2 $35.57 -3.67 Post-Earnings
CLH 31.0% -15.8 -33.7% -13.7 $53.06 +2.76 Post-Earnings
OC 22.9% -9.6 -29.5% -12.0 $40.03 -3.31 Post-Earnings

SINA 39.5% -15.7 -28.5% -16.0 $58.09 +4.61 Post-Earnings
SODA 44.2% -17.1 -27.9% -17.1 $51.00 -1.44 Post-Earnings
DISH 29.9% -11.0 -26.8% -10.4 $36.50 +0.41 Post-Earnings
WHX 74.3% +14.8 +24.9% -15.9 $5.68 -0.49
LEAP 53.1% -15.2 -22.2% -17.1 $5.77 -0.35 Post-Earnings

52-Week Highs
567 new highs: Too many symbols to list

52-week Lows
380 new highs: .DJX .HGX .SVO AAON AAT ABB ABBV ABC ABR ACAS ACCL ACE ACIW ACN ACOR ACWI ADC ADI ADP AEC AEIS AEP AER AFG AGM AHL AI AIN AIV AJG AKR AL ALDW ALE ALK ALL ALV AMRI AMSG ANSS AON AOS APH ARRS ATO AWH AWK AWR AXS AYI AZZ BDC BDN BERY BGC BKH BKMU BKU BMI BMR BOLT BRK/B BSET CAG CAMP CAS CATY CBD CCE CCG CELG CFN CG CHD CHE CHSP CL CLDX CLMT CLNY CLX CMCO CMS CP CSCO CSGP CSH CSU CTRX CUTR CWT CYH D DDM DDR DGS DRC DRN DRQ DSPG DTE DXLG ECHO ECL EFG EGP ELS ENH ENSG EPB EPL EQY ERIC ESC ETE ETN EWBC EWD EWL EXAR EXLS FAS FBP FDN FDUS FEIC FFCH FLT FNP FXO GGG GHL GIS GK GKK GLP GMT GOOG GOV GRFS GSH GVA GWR GWX GZT HAS HCN HCP HDV HEES HELE HNI HOLI HON HOTT HPP HR HRL HTGC HUBG HZO IAI IART IBCP IDA IDT IGV IJH IJR IJS IJT INDB INFI IOSP IR IRC IRET ITC IWC IWM IWN IWO IWP IYH IYJ IYR IYT JACK JEC JKS JLL KCE KFY KIE KIM KMB KRC KRE KRG KSU KW LAMR LGF LL LNC LNKD LNT LOCK LOPE LRY LTC LUB LXP LZB MAIN MDCO MDP MDY MEI MIDD MIDU MIL MMR MOVE MPC MPW MPWR MS MVV MX NBIX NCLH NEE NEOG NFLX NNN NTSP NU NVE NVMI NVS NWS NWSA OAK OHI OMX ORI OTTR OZRK PCH PCYC PDM PEP PGI PGR PIE PIKE PIR PL PNM PNNT PNW POWR PPL PRAA PRIM PSB PTP QGEN RBC RDN RE REG REV REXI RJF RNST ROP RPAI RRTS RSU RUSHA RUTH RWL RWR SAA SAM SATS SBS SCHA SCHD SCHH SCS SCTY SCZ SEP SHOS SIGI SIVB SIX SLH SLM SMA SNPS SPLV SPNC SPWR SRE STAG STEL SUP SUSQ SUSS SXL SYY TAL TECUA TG TGI THC THG TLLP TNA TNC TRAK TREX TSM TTEK TUES TWO TXI TYL UDOW UGP UIL UMDD UNP UNS URE URI URTY UWM UXI UYG VB VBK VBR VC VCI VCLK VCR VDC VFH VHT VLO VNQ VPL VRTU VSH VSS VT VTR VVC VVTV VXF VYM WAL WDFC WEN WES WRI WRLD WTR XLI XLP XLV XLY YHOO ZBRA ZIXI

Top Equity Blocks
4.00m SWY 20.40 -0.06 -0.3% FINRA-ADF 12:56:52
2.50m ADSK 39.03 +0.05 +0.1% FINRA-ADF 10:16:45 – Burst
2.49m T 35.61 -0.06 -0.2% FINRA-ADF 13:11:44 – Burst
2.34m PHB 19.19 -0.04 -0.2% FINRA-ADF 09:55:39 – Burst
1.99m VZ 44.99 +0.49 +1.1% FINRA-ADF 13:11:33 – Burst
1.98m T 35.61 -0.06 -0.2% FINRA-ADF 13:11:32 – Burst
1.98m T 35.61 -0.06 -0.2% FINRA-ADF 13:11:01 – Burst
1.98m VZ 44.99 +0.49 +1.1% FINRA-ADF 13:11:25 – Burst
1.97m VZ 44.99 +0.49 +1.1% FINRA-ADF 13:11:41 – Burst
1.96m T 35.61 -0.06 -0.2% FINRA-ADF 13:11:16 – Burst

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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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