WhatsTrading.com Options Recap — 01/07/2013

| January 7, 2013 | 0 Comments More


Stock market averages fell following big gains scored last week, but the decline is orderly and there hasn’t been much news of broad market significance to guide the action. The earnings-reporting season unofficially kicks off with a report from Alcoa (AA) Tuesday afternoon, but the floodgates on fourth quarter results don’t open for another week or two. Macro players are awaiting ECB and BOE meeting later in the week. The domestic economic calendar is light over the next few days and the action was subdued in the commodities markets, with crude up 13 cents to $93.22 and gold down $1.20 to $1647.7. Meanwhile, the Dow Jones Industrial Average is down 47 points, but 44 points off session lows. The NASDAQ dropped 3.

Overall options volumes are running about the typical levels and projected at 14.6 million contracts. With 20 minutes left in the session, 8 million calls and 5.5 million puts traded. Stripping out ex-div action in At&t, Verizon and a few others, volume is a less lopsided 6.8 million calls and 5.4 million puts. Meanwhile, CBOE Volatility Index (.VIX) is down .10 to 13.73 and active trading in the VIX pit continues. 447,000 calls and 243,000 puts so far.

Notable Flow

SIRI – Bearish activity detected in Sirius XM Radio Inc with 36788 puts trading, or 6x the recent avg daily put volume in the name. Shares near $3.085 (-0.015) with ATMIV lifting by 3.45 point and 62% of todays put premium trading offer side. (Trade-Alert)

BV – Bullish flow detected in Bazaarvoice Inc with 9681 calls trading, or 38x the recent avg daily call volume in the name. Shares near $8.99 (0.09) with ATMIV lifting by 5.48 point and 96% of todays call premium trading offer side. (Trade-Alert)

VOD – Bullish flow detected in Vodafone Group with 14893 calls trading, or 6x the recent avg daily call volume in the name. Shares near $26.001 (0.191) with ATMIV lifting by 1.26 point and 70% of todays call premium trading offer side. (Trade-Alert)

High options volume is being seen in T, VZ, AET, GIS, LVS, AA, GFI, UVXY, BX, VVUS

Daily Open Interest Update

Friday’s total option volume of 15.9 million contracts resulted in net open interest growth of 2.65 million calls and 2.59 million puts. Bank of America Corporation (BAC), Facebook Inc (FB), Apple Inc (AAPL) and Sprint Nextel Corporation (S) saw the greatest growth. Top five new positions opened include 26k Morgan Stanley (MS) Feb-13 20 calls, 25k Cheniere Energy Inc (LNG) Mar-13 22 calls, 20k Alcoa Inc (AA) Jan-14 5 puts, 20k Bank of America Corporation (BAC) 2/1 weekly 11.5 puts and 19k Nokia Corp (NOK) Feb-13 4.5 calls. (Auto Content (Trade-Alert))

Movers

Symbol Last Change %Change StdDevs
EPOC 11.69 +2.06 +21.5% 7.71
BIOL 2.40 +0.40 +20.0% 8.71
ESI 15.62 -3.67 -19.0% 6.44
NSM 38.84 +5.61 +16.9% 6.18
FOE 3.81 -0.76 -16.6% 5.03
BITA 8.35 +1.05 +14.4% 6.57
PRGN 3.41 +0.41 +13.7% 1.63
SCTY 16.16 +1.76 +12.2% 0.00
OPTR 10.37 +1.12 +12.1% 4.08
CACH 2.43 -0.32 -11.6% 2.74

Shakers (Implied volatility Movers)

Symbol IV[30d] IVChg IVChg% SkewAdjChg Last Change
TWO 19.2% +3.7 +23.7% +nan $11.71 -0.01
GIS 11.6% +2.1 +21.7% +nan $41.51 -0.26
ILMN 41.4% -10.5 -20.2% -11.5 $50.90 -3.86
ESI 122.4% +19.8 +19.3% +20.0 $15.62 -3.67
HAIN 41.1% +6.5 +18.6% +2.2 $52.92 -3.60
WFM 27.2% +4.1 +17.7% +1.4 $88.17 -3.05
MCRS 31.4% +4.5 +16.7% +0.9 $42.99 +0.07
MAKO 70.8% -13.7 -16.2% -14.5 $11.34 -0.65
CYCC 66.1% -12.3 -15.7% -8.1 $5.67 -0.11
CNP 18.0% +2.4 +15.4% +1.4 $19.63 -0.19

52-Week Highs
182 new highs: .HGX AB ACAS ACOR ADS AER AFSI AGN AINV ALGT ALK ALKS AMG AMRI AMZN ARCC ATAX ATK AVY BAC BAM BCS BDX BIOS BIP BITA BKMU BMO BRFS BXG CADX CBOE CECE CELG CIB CKEC CLNY COF CPRT CRAY CRI CUZ CVD CYOU CYT CZZ DAL DBV DDD DHR DLX EGHT EQIX EQM EXP EXR FAA FCE/A FDN FIG FLO FLS FLT FUL FXO GA GEL GKK GPOR GRP/U GSIT GUID HA HAO HERO HLX HON HRL HSIC HTGC HTZ HUN HXL ING IOSP IP ITB IYF JNK KBWB KCE KFN KKD KWR LBTYA LCC LEN LGF LKQ LNDC LSE LUV LXP MA MCK MGA MIL MLM MMM MMP MPEL MSG MTD MUSA MX NCT NHI NRF NSM NTCT NTSP NUE ODFL OPEN PAA PACW PCL PEI PHM PKY PLD PNK PODD PVH PWR QDEL QIHU RJET RJF RMD RNF ROLL RS RYL RYN SBNY SCCO SCTY SEIC SEMG SIM SNTA SODA SRCL SSYS SXL SYK SYMC SYRG TAO TEAR TFX TGI TKC TMO TRMB TROW TRP TTEK TYL UAL UHS UNXL V VAR VIVO WOR WRC XL XXIA ZMH ZQK

52-week Lows
8 new lows: CIG CPL ESI MAKO PANW SVM TLAB VLTR

Top Equity Blocks
3.63m EWJ 9.77 -0.09 -0.9% FINRA-ADF 10:51:18 – Burst
1.57m SPY 145.60 -0.74 -0.5% FINRA-ADF 13:19:10 – Average Price Trade
1.40m SPY 145.65 -0.70 -0.5% CHX (MIDWEST) 13:31:06 – Tied to Options
1.40m TEVA 38.00 -0.04 -0.1% FINRA-ADF 12:16:24 – Burst
1.34m EPP 47.43 -0.33 -0.7% FINRA-ADF 10:47:24 – Burst
1.33m SO 43.35 -0.81 -1.8% FINRA-ADF 12:05:12 – Burst
1.30m SPY 145.55 -0.84 -0.6% CHX (MIDWEST) 12:59:17 – Tied to Options
1.18m EZU 33.28 -0.27 -0.8% FINRA-ADF 11:14:12 – Burst
1.02m ATML 7.00 +0.14 +2.0% FINRA-ADF 12:57:35
1.00m QQQ 66.68 -0.18 -0.3% FINRA-ADF 14:04:57

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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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