New book by Larry Connors - Click here to read more
Points of Significance:
Finisar (FNSR | Quote | Chart | News | PowerRating) gained over 13% today on double its average trading volume. The company was upgraded from "hold" to "buy" today as Credit Suisse First Boston noted that the demand for networking equipment is holding steady and that Finisar is building a solid backlog. Its options traded over three times its average volume. Finisar's implied volatility as compared to historical volatility is somewhat low.
Travelocity.com (TVLY | Quote | Chart | News | PowerRating) fell over 11% on over four times its average volume. The company lowered its fourth quarter revenue outlook, citing lower-than-expected airline ticket sales. Travelocity did manage to find some support at its .382 retracement level from its November 12 low to its December 31 high. Its options traded almost three times its average volume. Implied volatility is also low.
Implied volatilities for Halliburton (HAL | Quote | Chart | News | PowerRating) and Fair Isaac (FIC | Quote | Chart | News | PowerRating) are at a new high. Look for short volatility strategies, such as ratio spreads, straddles, and strangles.
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VIX | 22.02 | DOWN 0.81 | NONE | 4.51 % Below | Not At Extreme |
| VXN | 46.86 | DOWN 0.21 | NONE | 3.34 % Below | Not At Extreme |
Abnormal Options Volume With Price Movement -- Abnormal options volume (calls and puts) with stock price movement
| Name | Symbol | Net % Change | Volume | Avg. Volume |
| Red Hat | RHAT | + 16.19 | 2892 | 1145 |
| WebMethods | WEBM | + 15.93 | 1290 | 309 |
| Finisar Corp. | FNSR | + 13.26 | 3792 | 1243 |
| Manhattan Associates | MANH | + 11.21 | 296 | 118 |
| Travelocity.com | TVLY | - 11.11 | 932 | 316 |
| BEA Systems | BEAS | + 10.88 | 20673 | 5242 |
Stocks With Biggest Spikes in Implied Volatility -- Stocks with biggest increases or decreases in implied volatility compared to previous day
Spike Up
| Name | Symbol | IV | Previous IV | High IV | Low IV |
| Halliburton | HAL | 110.8 | 91.8 | 89.9 | 45.2 |
| Solutia | SOI | 70.1 | 83.6 | 43.5 | 32 |
| Archer Daniels Midland | ADM | 33.3 | 28.8 | 43.5 | 32 |
| Roslyn | RSLN | 38.4 | 33.3 | 41.2 | 25.4 |
| Telefonos De Chile | CTC | 33.2 | 28.8 | 50.4 | 26.2 |
| Fair Isaac | FIC | 64.8 | 56.5 | 51.3 | 44 |
Spike Down
| Name | Symbol | IV | Previous IV | High IV | Low IV |
| Sovereign Bancorp | SOV | 32.6 | 38.2 | 40.3 | 33.9 |
| Modis Prof. Services | MPS | 50.7 | 57.9 | 71.6 | 57 |
| Constellation Brands | STZ | 30.3 | 34.69 | 49.9 | 32.4 |
| Lear | LEA | 33.7 | 38.1 | 53 | 30.4 |
| Aquila | ILA | 48.4 | 53.4 | 54.1 | 39.6 |
| Calpine | CPN | 68 | 75.6 | 119.5 | 53.3 |
Please use stops on every trade!
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