WhatsTrading.com Options Recap — 01/04/2013

| January 4, 2013 | 0 Comments More


Market action was mixed through midday, but buying interest surfaced late in the day and market averages are probing session highs. The employment situation was in focus early after the Labor Department said the US economy added 155K jobs last month and the unemployment rate was steady at 7.8 percent. The numbers were mostly in-line with expectations and there was minimal reaction to the report. The ISM Services Index for December was up to 56.1 and much better-than-expected, but that too was greeted with a collective shrug from investors. Instead, the focus is shifting away from the fiscal cliff and beginning to center on earnings. There’s possibly optimism that the fourth quarter profits will prove less grim than previously feared, but (although AA unofficially kicks off the earnings-reporting season Tuesday) the flood of fourth quarter reports doesn’t begin for a couple more weeks. Elsewhere, Japan’s Nikkei gained 2.8 percent in a catch-up rally after markets were closed for holiday. European benchmarks traded in a range and finished with modest gains. Crude edged up .11 to $93.03 and gold remains under pressure on yesterday’s Fed buyback news. The metal lost another $17.7 to $1656.9. On Wall Street, the Dow is now up 55 points. The NASDAQ erased midday losses and is up 6 points.

Overall options volumes are slowing ahead of the weekend and projected to reach 15.5 million contracts. With about 15 min left to trade, 8.1 million calls and 6.5 million puts have changed hands. After a dramatic two-day 8-point rout, Monday and Friday, VIX remains under pressure – down .77 to 13.79 and nearly 9 points from the six-month highs seen a week ago.

Among the individual names seeing action, MBIA has witnessed afternoon spike and surging call activity ahead of Jan 9 and Jan 10 hearing related to a dispute with BofA (BAC). MBI is now up 90 cents to $9.04 and 44,000 options traded on the stock. Zynga (ZNGA) saw a flurry of activity through midday, just before launching an additional 13 cents higher to $2.64. More than 63,000 contracts traded on the social media game company today. Sprint gained 12 cents to $5.94 and the Jan and Feb 6 calls on the stock were actively traded. Today’s flow includes a large block of Yahoo Jan 20 calls. Shares are up 9 cents to $19.87 and 45000-contract block traded at 27 cents per contract. Finally, Apple’s (AAPL) expiring Weekly 530 calls are today’s most actively traded equity options contract. The stock is down 2.5 percent to $528.60 and the contract is now $1.40 out-of-the-money. Volume is approaching 80,000.

Have a great weekend! See you Monday.

Notable Flow

BYD – Bullish flow detected in Boyd Gaming Corp with 15985 calls trading, or 6x the recent avg daily call volume in the name. Shares near $7.06 (0.16) with ATMIV lifting by 7.86 point and 90% of todays call premium trading offer side. (Trade-Alert) 15:01

MBI – Bullish flow detected in MBIA Inc with 24135 calls trading, or 6x the recent avg daily call volume in the name. Shares near $8.63 (0.49) with ATMIV lifting by 1.17 point and 69% of todays call premium trading offer side. (Trade-Alert) 14:41

ACHN – Bullish flow detected in Achillion Pharmaceuticals Inc with 5291 calls trading, or 7x the recent avg daily call volume in the name. Shares near $9.42 (0.66) with ATMIV lifting by 1.14 point and 83% of todays call premium trading offer side. Auto Content (Trade-Alert) 14:21

High options volume is being seen in S, GDXJ, TBT, LNG, AA, HAL, ZNGA, LULU, MET, WFT

Daily Open Interest Update

Thursday’s total option volume of 18.1 million contracts resulted in net open interest growth of 2.80 million calls and 2.53 million puts. Bank of America Corporation (BAC), Ford Motor Company (F), Williams Companies Inc (WMB) and Facebook Inc (FB) saw the greatest growth. Top five new positions opened include 50k Williams Companies Inc (WMB) Aug-13 40 calls, 50k Williams Companies Inc (WMB) Aug-13 45 calls, 22k Ford Motor Company (F) 1/11 weekly 14 calls, 17k Ford Motor Company (F) Jan-14 15 calls and 16k General Motors Company (GM) Mar-13 32 calls. (Trade-Alert)

Movers

Symbol Last Change %Change StdDevs
ARAY 5.40 -1.38 -20.4% 10.14
UNXL 16.82 +2.72 +19.3% 1.40
DBLE 4.62 +0.63 +15.8% 14.01
PRGN 2.96 +0.40 +15.6% 1.97
SVU 2.97 +0.38 +14.7% 4.23
SCTY 14.73 +1.71 +13.1% 0.00
XRM 3.63 +0.41 +12.7% 6.28
MBI 9.14 +1.00 +12.3% 4.93
APKT 23.98 +2.60 +12.2% 5.10
FOLD 3.69 +0.39 +11.8% 0.75

Shakers (Implied volatility Movers)

Symbol IV[30d] IVChg IVChg% SkewAdjChg Last Change
FINL 36.4% -16.4 -31.1% -20.0 $17.20 -1.84 Post-Earnings
S 22.3% +4.2 +23.5% +3.7 $5.93 +0.11
ULTA 26.1% -7.4 -22.2% -8.9 $97.62 -4.37
HMA 42.7% +7.7 +22.1% +7.5 $9.50 -0.05
BYD 58.4% +10.1 +20.9% +9.3 $7.00 +0.10
MOS 21.3% -5.6 -20.9% -4.8 $59.02 +2.25 Post-Earnings
CBOU 19.5% -4.3 -17.9% +nan $16.11 -0.05
TWO 15.5% -3.0 -16.3% -2.8 $11.70 +0.19
SAN 22.0% -4.2 -15.9% -5.1 $8.30 +0.12
KRO 42.7% +5.7 +15.5% +2.4 $20.34 +0.25

52-Week Highs
320 new highs: .HGX .YUK AB ABG ACAS ACE ACOR ACWI ADS AEG AER AFG AFSI AGII AGN AHS AIMC AINV ALE ALK AME AMG APO ARCC ARG ARTC ASGN ATAX ATK AVNW AVY BA BAM BAP BC BCEI BEAV BECN BG BK BKH BLK BLL BMI BMO BMRN BMS BOBE BRFS BXG C CADX CAR CBOE CCE CELG CGI CHDN CHMT CKEC CMN CMS CORE CP CPF CRI CSC CSU CTB CVS CXW CYT CZZ DAL DBV DHR DKL DLX DRC DXPE EFX EIG EOG EPHC EQM ESC ESE ESV EV EVR EXH EXP EXPE FAA FAS FBRC FCBC FDN FET FFIN FIG FLO FLS FLT FNGN FRP FXO FXZ GA GBLI GEL GHL GPI GPK GS GSIT GUID GWR HA HAO HBI HCC HIG HLX HNR HON HOTT HRL HSNI HTZ HUB/B HUN IILG IJH IJK IJR IJS IOSP IP ITC IVE IVZ IWC IWD IWM IWN IWP IWR IWS IYF IYG IYJ IYT JBHT JLL KAI KALU KAMN KBE KBWB KCE KIE KKD KSU LAD LAZ LCC LECO LGF LII LMCA LNC LNG LPX LUV LYTS MCO MDY MFC MGA MHLD MIC MIL MMM MMP MOO MPEL MPW MRC MTZ MUSA MVV MWV MX NCR NHI NRF NTCT NTRS NTSP NWL OCR OFG OKSB OPEN ORI OSK PAA PACW PAG PCH PCL PDP PEI PHM PJC PKI PLD PNK POL POM POWR PRI PTP PUK PWR QDEL QIHU RHI RJET RJF RLJ RMD ROK ROLL ROP RSE RSP RTI RWT RY RYN SAA SAH SBNY SCHA SCHW SCTY SDY SEH SEIC SGMO SHLM SIRI SJM SJR SMA SNBC SNV SNY SRDX STEL STT SWM SXL TAO TCB TEAR TFSL TFX TGI THC TKC TM TMH TMK TMO TNA TRMB TROW TTEK TVL UHAL UNP UNS UNXL URBN URI URTY UWM UXI UYG VAR VASC VB VBK VBR VFH VIAB VIG VLO VO VOE VOT VRSK VTV VXF WAL WCN WGO WST WY WYN XL XLB XLF XLI YCS ZMH ZQK

52-week Lows
29 new lows: .VXEEM .XDN BAA ENDP FAZ FINL FSG FXY MAKO MIDZ MZZ NEWN RSW RWM SDS SH SKF SMDD SMN SPXS SPXU SRTY SVM TWM TZA UVXY VIIX VIXY VXX

Top Equity Blocks
4.20m RAD 1.38 FINRA-ADF 13:19:56
2.76m BEE 6.52 -0.11 -1.7% FINRA-ADF 13:25:29 – Burst
1.92m ONNN 7.36 +0.04 +0.6% FINRA-ADF 09:59:07 – Derivatively Priced
1.55m SPY 145.80 +0.07 +0.0% CHX (MIDWEST) 10:43:49
1.50m SIRI 3.14 +0.06 +1.9% FINRA-ADF 10:53:54
1.50m VXX 27.78 -0.49 -1.7% FINRA-ADF 14:30:41 – Average Price Trade
1.22m SPLV 28.34 +0.05 +0.2% FINRA-ADF 11:59:59
1.17m BSBR 7.31 -0.10 -1.3% FINRA-ADF 10:00:09
1.13m IAU 16.06 -0.13 -0.8% FINRA-ADF 09:47:55
1.10m MRVL 7.63 +0.14 +1.9% FINRA-ADF 11:45:19

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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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