WhatsTrading.com Options Recap — 12/19/2012

| December 19, 2012 | 0 Comments More


Stock market averages are modestly lower after two days of big gains. Trading was mixed throughout most of the morning session and lacking any real conviction after data showed Housing Starts declining to an annual rate of 861K in November, which was below expectations of 875K. However, permits, a better gauge of future activity, rose to 899K rate and much better than the 875K that was expected. The market saw whippy trading on the day in the morning session and selling picked up a bit in the afternoon on pessimistic fiscal cliff commentary from House Speaker Boehner. In stock news, Fedex (FDX) moved higher and helped the transports after posting better than expected EPS and revenue numbers. News that the Treasury Department is selling its stake in GM drove an 8 percent gain in the automaker’s shares. Herbalife (HLF) is back in focus on reports Pershing is short the stock. Elsewhere, Japan’s Nikkei continues its recent resurgence, gaining 2.4 percent, and stock market averages were mostly higher across the Eurozone. Crude oil is up $1.46 to $89.86 on weekly inventory data, but the gold bugs are seeing another day of losses after the yellow metal slipped $1 to $1669. On Wall Street, the Dow Jones Industrial Average has traded in an 80-point range and is down 50. The NASDAQ is flat.

Overall options volumes are running at a good pace for a second day and projected to reach almost 19 million contracts. The higher volumes are likely to continue tomorrow and early-Friday due to the Quadruple Witch expiration, before trading slows to a crawl next week. Stripping out heavy ex-dividend trading in GE, DOW and CAT today, overall options volumes includes 8.4 million calls and 6.9 million puts. (Try @nondiv in Flow Monitor and then choose Sentiment for a look at real-time put-to-call ratios across the exchanges, excluding ex-dividend trading. Use symbol @all to see all the activity, @stock for equities only, @ETF and @Index for exchange-traded funds and indexes.)

Among the individual equities with interesting options activity today, GM is seeing a flurry of activity on the day’s Treasury sale news. 159,000 options traded on the automaker. Herbalife and Nuskin (NUS) volatility is up sharply on reports Bill Ackman is short HLF. Usual activity surfaced in Harley Davidson Dec 50 calls midday. Avon Products (AVP) is also seeing bullish activity. Meanwhile, CBOE Volatility Index (.VIX) is up 1.80 to 17.37 on VIX expiration Wednesday. The settlement print for December options on the index is 16.69, up from 15.05 at the November expiry.

Notable Flow

JCI – Bullish flow detected in Johnson Controls Inc with 8068 calls trading, or 4x the recent avg daily call volume in the name. Shares near $30.11 (0.89) with ATMIV lifting by 2.25 point and 83% of todays call premium trading offer side. (Trade-Alert) 10:01

PPHM – Bullish flow detected in Peregrine Pharmaceuticals Inc with 3293 calls trading, or 2x the recent avg daily call volume in the name. Shares near $1.21 (-0.04) with ATMIV lifting by 15.41 point and 81% of todays call premium trading offer side. (Trade-Alert) 10:21

ENDP – Bullish flow detected in Endo Health Solutions Inc with 3063 calls trading, or 21x the recent avg daily call volume in the name. Shares near $26.16 (-0.04) with ATMIV lifting by 1.91 point and 87% of todays call premium trading offer side. (Trade-Alert) 11:01

High options volume is being seen in GE, DOW, CAT, ORCL, GM, PSX, VWO, BP, ANR, HLF

Daily Open Interest Update

Tuesday’s total option volume of 21.8 million contracts resulted in net open interest growth of 1.52 million calls and 2.15 million puts. Microsoft Corp (MSFT), Bank of America Corporation (BAC), Sirius XM Radio Inc (SIRI) and Nokia Corp (NOK) saw the greatest growth. Top five new positions opened include 49k Microsoft Corp (MSFT) Jan-13 28 calls, 49k Microsoft Corp (MSFT) Jan-13 30 calls, 49k Nokia Corp (NOK) Jan-13 4.5 puts, 37k Sirius XM Radio Inc (SIRI) Jan-13 3 puts and 36k Sirius XM Radio Inc (SIRI) Jan-13 3 calls. Auto Content (Trade-Alert) 9:01

Movers

Symbol Last Change %Change StdDevs
ONTY 2.08 -2.42 -53.7% 13.32
ALTE 28.38 +5.23 +22.6% 23.44
PLXT 3.69 -0.81 -18.0% 8.06
PGNX 2.80 +0.39 +16.2% 3.92
AFFY 19.38 -2.92 -13.1% 5.62
HLF 37.70 -4.80 -11.3% 6.21
CSIQ 3.41 +0.34 +11.3% 2.65
AIR 18.50 +1.76 +10.5% 7.45 Post-Earnings
.BVZ 17.18 +1.61 +10.3% 3.19
.VIX 17.18 +1.61 +10.3% 3.19

Shakers (Implied volatility Movers)

Symbol IV[30d] IVChg IVChg% SkewAdjChg Last Change
HTS 19.8% +8.3 +73.1% +nan $25.15 +0.29
ESI 31.6% -43.6 -58.0% -45.0 $19.56 -0.49
HLF 79.8% +28.8 +56.4% +21.7 $37.79 -4.71
TWO 14.1% -14.0 -49.8% -13.0 $11.56 +0.04
FMCN 28.0% -20.5 -42.3% -11.6 $25.48 +1.57
NUS 56.0% +15.9 +39.7% +11.4 $42.44 -3.24
ORCL 18.0% -6.6 -26.8% -3.2 $34.17 +1.29 Post-Earnings
FSIN 23.6% +4.8 +25.4% +nan $9.46 +0.04
S 18.4% -6.2 -25.2% -5.1 $5.46 -0.07
IVR 18.1% -5.9 -24.4% -4.7 $21.16 +0.33

52-Week Highs
249 new highs: .GBP .HGX .XDB .YUK AAMRQ ACM ACWX ADBE ADI ADS AEG AEGN AEGR AHT AINV AKAM ALGT ALK ALTE AMP AMRI AOS APH APOG ARII ARMH ARRS ASH ASML ASR ATK AWR BAC BAM BAP BBL BC BCS BDC BEAV BECN BG BGG BK BKH BMI BMO BNS BOBE BRS C CAR CCL CCOI CM CMCSA CMCSK COBZ COG CONN CPA CPF CRAY CREE CRM CROP CSV CTB CUBE CUK CVI CX CYMI CZZ DDD DOX DZK EFA EFG EFV EGOV EHTH EIG ELD EME EMLC EMN ETN EWG EWL EWQ EWY EXP EZU FAA FAS FDN FDP FEZ FR FSP FSS FXO FXS FXZ GIS GM GRA GS GSIT GVA GZT HBC HCC HFC HHC HMA HNP HON HOV HRB HRL HSNI HTZ IBN ICON IEV IEX IFF IFSIA INFI INTU IP IPGP ITB KCE KFN KUB LAZ LBTYA LEN LGND LHCG LIFE LII LLTC LPX LUV LUX LYG MCHI MCO MD MED MIC MIDD MLM MPC MSG MTX MXIM N NHI NMR NRF NSP NTI NTRS NVS NX OAK OFG ORCL PCP PHG PHH PHM PHO PIE PJC PKG POWR PRSC PTP PWR QUAD RBS RCL RLGY ROG ROK RPM RS RSE RSP RSU RTEC RTN RY RYL SAP SATS SCHF SHAW SHLM SI SJR SMBL SMFG SNTS STEL SWM SYT TEL TEX THC TM TRN TROW TRP TV UBS UHS UL UN UNF URBN UTEK UYG VBR VCR VEA VEU VFH VGK VLO VO VOE VPL VXUS WAB WAG WDR WPI WPPGY WXS XLF XLI XLY

52-week Lows
35 new lows: .VXEWZ .XDN AZK BAA BPT DPK EDZ EEV EFZ EGLE EPV EUFX FAZ FXP FXY GSE HDGE HLF MIDZ MSO MZZ ONTY PAL PCXCQ RSW SCOK SEF SIJ SKF SMDD SYX TEU THQI VXZ YANG

Top Equity Blocks
9.00m SIRI 2.91 -0.05 -1.7% FINRA-ADF 11:25:31
9.00m SIRI 2.91 -0.05 -1.7% FINRA-ADF 11:11:24
8.50m SIRI 2.90 -0.06 -2.0% FINRA-ADF 10:45:54
5.65m XLF 16.55 -0.01 -0.1% FINRA-ADF 11:01:21
5.00m SIRI 2.91 -0.05 -1.7% FINRA-ADF 11:14:41
5.00m SIRI 2.91 -0.05 -1.7% FINRA-ADF 11:14:36
3.67m AONEQ 0.02 -0.00 -2.0% 10:22:15
3.00m HMA 9.00 +0.43 +5.0% FINRA-ADF 15:19:34
2.50m SIRI 2.91 -0.05 -1.7% FINRA-ADF 11:32:25
2.10m ANR 9.65 -0.27 -2.7% CHX (MIDWEST) 14:09:36

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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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