WhatsTrading.com Options Recap — 03/12/2013

| March 12, 2013 | 0 Comments More



Stock market averages are lower Tuesday afternoon, but the decline has been orderly and without much conviction. With no domestic economic news slated until Retail Sales tomorrow morning, some of the early focus was on the story stocks of the day. Costco (COST) rose on earnings and Yum Brands (YUM) ticked higher on same store sales results. Merck (MRK) is the Dow’s best gainer after an independent board recommended the continued development of its cholesterol drug. Apple (AAPL) dropped below $430 on cautious analyst commentary. Elsewhere, crude oil prices are up 44 cents to $92.50 and gold gained $14.5, to $1592.5 and almost two-week highs. Market averages were mostly lower across Asia and mixed in Europe. On Wall Street, the Dow is down 10 points and the tech-heavy NASDAQ is off 17 points.

Overall options volumes are light, but much better than Monday. Projected volume is 16.7 million contracts. With about an hour left to trade, 7.6 million calls and 5.9 million puts traded across the 11 options exchanges. 850K contracts traded in Merck, with much of the flow being driven by ex-dividend activity. KO, MO and EMN are also seeing higher volumes due to ex-dividend activity. EFA, the “eefah” ETF, is the subject of high put activity, being led by a roll of bearish puts from April 57s to July. Meanwhile, VIX is rebounding from the five-year lows set yesterday. The decline Monday was also related to the fact that March options were removed from the index’s calculation because they have less than 7 days until they expire. VIX is up 1.10 points to 12.66.

Notable Flow

GLUU – Bullish flow detected in Glu Mobile Inc with 6780 calls trading, or 17x the recent avg daily call volume in the name. Shares near $2.99 (0.57) with ATMIV lifting by 14.94 point and 52% of todays call premium trading offer side. (Trade-Alert) 14:21

VELT – Bullish flow detected in Velti PLC St Helier with 2371 calls trading, or 2x the recent avg daily call volume in the name. Shares near $3 (-0.21) with ATMIV lifting by 7.53 point and 62% of todays call premium trading offer side. (Trade-Alert) 12:21

PBI – Bearish activity detected in Pitney Bowes Inc with 2132 puts trading, or 3x the recent avg daily put volume in the name. Shares near $14.3664 (0.1364) with ATMIV lifting by 1.14 point and 84% of todays put premium trading offer side. (Trade-Alert) 11:51

High options volume is being seen in MRK, EFA, KO, MO, EMN, S, STX, GG, YUM, SNE

Daily Open Interest Update

Monday’s total option volume of 16.0 million contracts resulted in net open interest growth of 2.20 million calls and 2.52 million puts. Research In Motion Ltd (BBRY), Bank of America Corporation (BAC), Ford Motor Company (F) and Apple Inc (AAPL) saw the greatest growth. Top five new positions opened include 37k Ford Motor Company (F) Mar-13 13.5 calls, 36k Freeport McMoran Copper and Gold Inc (FCX) Aug-13 41 calls, 34k Freeport McMoran Copper and Gold Inc (FCX) Aug-13 45 calls, 30k TJX Companies Inc (TJX) Apr-13 45 calls and 22k Research In Motion Ltd (BBRY) Mar-13 14 puts. (Auto Content (Trade-Alert))
Movers

Symbol Last Change %Change StdDevs
GLUU 2.97 +0.55 +22.7% 6.71
AAMRQ 3.72 +0.47 +14.5% 1.14
EMAN 3.47 -0.58 -14.3% 4.67
AMED 10.59 -1.67 -13.6% 5.10 Post-Earnings
ENPH 5.86 +0.66 +12.7% 2.13
HEK 4.18 +0.47 +12.7% 3.81
SHOS 37.56 -5.43 -12.6% 5.81
EXK 6.50 +0.71 +12.4% 3.03
CAB 60.47 +6.57 +12.2% 6.18
RBY 2.33 +0.24 +11.5% 2.95

Shakers (Implied volatility Movers)

Symbol IV[30d] IVChg IVChg% SkewAdjChg Last Change
URBN 26.0% -17.6 -40.4% -16.6 $41.73 +0.23
AGNC 8.9% -5.5 -38.3% -5.1 $33.03 +0.28
DMND 40.2% -24.8 -38.2% -24.1 $15.82 -1.78
COST 14.6% -7.2 -33.1% -6.6 $103.65 +1.21 Post-Earnings
TWO 16.1% +4.0 +32.9% N/A $13.43 +0.18
YUM 20.6% -9.1 -30.6% -8.2 $68.79 +0.95
MRK 14.7% -6.4 -30.4% -4.7 $45.03 +1.38
DLR 20.6% +4.7 +29.2% N/A $68.30 -0.36
BRE 20.0% -6.7 -25.2% -7.1 $48.68 -0.05
AT 79.2% +15.3 +23.9% +13.1 $5.63 +0.08

52-Week Highs
333 new highs: .BPX .BSZ .DJX .HGX .OEX .SPX .SPXPM .SRO .SVO .XEO .XSP AAMRQ ABC ABR ACAS ACE ACGL ACMP ADP ADVS AEL AER AFG AGO AIZ ALGT ALL ALTE ALV AMG AMRI ARG ASBC ATK ATO ATR ATSG AVY AXP BA BBH BCE BDX BEAV BEN BIIB BIOS BK BMS BMY BOKF BRK/B BX CAB CAH CAR CBG CBI CCIX CECE CELG CFN CFX CGEN CHSP CIM CKP CLC CLDT CME CMS CNMD COL CONN CPN CR CRL CSC CSII CTCM CVA CVD CVRR CVX CVY CX CYH DBV DDM DEXO DFS DGT DHR DIA DLPH DSX DTLK DTN DVY DXCM ECL EFA EFII EIX ENH ERIC ERJ EWA EWD EWL EXLP FAA FBT FFCH FFG FIG FIS FLWS FNP FPO FRGI FTC FTK FXCM FXD FXO FXZ GASS GB GBCI GGG GIL GILD GLAD GPC GPRE GRA GTLS GV HDV HEP HHC HIG HII HLS HMA HRB HTZ HUB/B HWD IBB ICFI IDU IEFA IEO IGT IHF IJH IMMR IOO IR IRE IRWD ISIS IVE IVV IWB IWD IWR IWS IWV IYH JAZZ JBLU JNJ KELYA KEX KIE KKR KRFT KWR LAMR LECO LEDR LL LM LMOS LNG LPNT LUV LYB LYV LZB M MAN MAT MCC MCK MDY MEOH MERU MFA MGC MGV MIDU MINI MMM MNKD MOD MOVE MU MVV MWV NBIX NFG NPO NRF NRG NWL OAK OEF OME ORBC ORI OTTR OWW OZRK PDCE PENN PGR PL POL PPH PRXL PTEN PTP RBC RE REXX ROC RSP RWL RWT SCHA SCHB SCHD SCHF SCHM SCHX SCI SCR SDY SEH SEP SFD SGEN SHW SKYW SLGN SMLP SNDK SNTS SONC SPMD SPXL SPY SQI SRCL SRDX SSO STEI STRZA SUSP SYK TBI TCB TFSL TFX TGI TGT THC TLLP TMK TMO TRI TRN TSRA TTI TWO TXN TXT UDOW UGI UHS UMDD UNXL UPRO URS URTY USAC UTHR UTX UVV VB VBK VBR VDC VEA VHS VHT VIG VOE VOO VTI VTV VV VVC VVTV VXF VYM WDC WFC WGL WGO WLK WPC XBI XL XLB XLE XLV XRT Z

52-week Lows
28 new lows: .GBP .OVX .PZO .XDB CNSI CVU DOG DUG DXD ENZN ERY FXB MIDZ SDOW SDS SH SHOR SMDD SPXS SPXU SRTY TWM UVXY VELT VIIX VIXY VXX WIFI

Top Equity Blocks
2.92m EWJ 10.46 -0.07 -0.7% FINRA-ADF 10:44:02
2.00m GLCH 0.57 +0.02 +3.4% FINRA-ADF 10:46:30
1.40m HCBK 8.70 -0.03 -0.3% FINRA-ADF 10:25:40
1.30m NVAX 2.05 -0.01 -0.5% FINRA-ADF 09:45:19
1.00m SPY 156.02 -0.78 -0.5% FINRA-ADF 14:12:19 – Average Price Trade
1.00m MRK 45.00 +1.35 +3.1% FINRA-ADF 14:08:18 – Average Price Trade
1.00m CLWR 3.20 -0.04 -1.2% FINRA-ADF 12:44:49
1.00m SPY 155.90 -0.45 -0.3% FINRA-ADF 11:15:52 – Average Price Trade
1.00m HCBK 8.70 -0.01 -0.1% FINRA-ADF 09:56:30
1.00m HCBK 8.70 -0.03 -0.3% FINRA-ADF 09:48:22

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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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