Your daily option s trading wrap up. Market Sentiment Stock market averages are
holding modest gains late-Friday. The consumer was in focus early after the
Commerce Department reported that Retail Sales rose 1% in February, which was
in-line with expectations. However, a separate report released a bit later
showed the University of Michigan Consumer Sentiment Index down to 68.2 in
mid-March, from 77.5 in late-February and well below economist estimates of
76.5. Stock market averages dipped on the news, but after a 228-point loss
yesterday, the Dow Jones Industrial Average was steady at midday. Investor
attention has shifted somewhat, from the European Debt Crisis and the escalating
violence in NAME (North Africa, Mid-East) and to the devastating earthquake in
Northeast Japan. Overall market action has been relatively quiet and the tone of
trading has a wait-and-see feel to it, as investors try to make sense of the
myriad of different events happening around the globe. Crude oil (April), which
moved towards $107 Monday, is down $1.70 to $101. Exxon (NYSE: XOM ), GE (NYSE:
GE ), and 3M (NYSE: MMM ) are leading the Dow to a 58-point gain. The tech-heavy
NASDAQ added 15. With less than 90 minutes to trade, the CBOE Volatility Index
(CBOE: VIX ) is down 1.70 to 20.18. Options flow reflects the cautious sentiment
today, with 6.6 million calls and 6.3 million puts traded so far. Bullish Flow
Clean Energy Fuels (NASDAQ: CLNE ) opened higher on earnings news and the
advance was extended midday after President Obama mentioned T Boone Pickens, a
major shareholder (32% in Oct 2010). CLNE is now up $1.68 to $14.68 and
today's options volume includes 7400 calls/2800 puts, which is three times the
average daily volume for CLNE. Most active are CLNE March 13 Puts and Calls ,
which expire in one week. Implied volatility is down 9% to 53. Cisco (NASDAQ:
CSCO ) touches another 52-week low, down 13 cents to $17.79. In options action,
one investor bought the CSCO March 18 Straddle at 52 cents, 11,150 times. About
20 minutes later, the CSCO April 18 Straddle was sold at $1.08, 11, 000 times.
The two trades might roll a position from March to April. If so, it's possibly
a bet that Cisco shares will hold around $18 through the April expiration, in 35
days. Bearish Flow iShares MSCI Japan Index Fund (NYSE: EWJ ) is trading down 20
cents to $10.79 early Friday after a quake struck off the coast of Sendai, which
is a town of about 1 million that accounts for 8% of Japan's GDP. It hit in
the final hour of trading in Tokyo and sent the Nikkei skidding 100 points. The
decline has been orderly, however, and EWJ is off 1.8%. Meanwhile, put volume in
the Japan ETF is 3,900 contracts, which is five times the expected and compares
to call volume of 720. EWJ Mar 11 Puts , which expire at the end of next week
and have a delta of -.65, are the most active with 1,650 traded. Mar 10, Apr 11,
and Jun 10 puts are seeing interest as well. Implied volatility is up 11% to 21,
compared to a 52-week high and low of 31.5 and 15. Implied Volatility Mover Star
Scientific (NASDAQ: CIGX ) options are seeing another day of brisk trading, as
shares add 35 cents to $2.72. CIGX has surged nearly 50% over the past four
days. Attention is now shifting to the CIGX March 3 Calls and CIGX May 3 Calls ,
which have traded 1325, and 2155 times, respectively, and more than two-thirds
at the offer. Mar, Apr and Aug 2.5 calls are seeing action as well. 12,000 call
options and 900 puts traded. Implied volatility is up 30% to 136. The company
announced today that its claims in a patent reexamination have been confirmed.
Option Flow Bullish flow detected in Cleveland BioLabs (NASDAQ: CBLI ), with
2083 calls trading, or five times the recent average daily call volume. Bearish
activity detected in CurrencyShares Japanese Yen (NYSE: FXY ), with 8473 puts
trading, or five times the recent average daily put volume. Bearish activity
detected in Toyota Motor (NYSE: TM ), with 2548 puts trading, or two times the
recent average daily put volume. Increasing volume is also being seen in
International Coal (NYSE: ICO ), Rackspace (NYSE: RAX ), and the SPDR Energy ETF
(NYSE: XLE ). Frederic Ruffy is the Senior Options Strategist at
Whatstrading.com , a site dedicated to helping traders make sense of the complex
and fragmented nature of listed options trading.
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