Stocks quoted in this article:
Here are the stocks that saw a bias toward call activity in the previous session.
This filtered scan is based on the International Securities Exchange (ISE) buy-to-open data. It looks for stocks where the previous day's call volume on the ISE is at least twice as great as the put volume. It then sorts the stocks based on the call volume. Since this is buy-to-open data, this can be a good source for finding stocks where optimism is emerging. Of particular interest to me would be situations where we see call activity on stocks that are still in intermediate-term downtrends. This would be a potentially cautionary sign from the contrarian perspective.
Near the top of the list we find two old-school tech giants - Microsoft Corporation (NASDAQ: MSFT) and Intel Corporation (NASDAQ: INTC). Shares of INTC are fighting congestion while shares of MSFT trend higher.
The activity on JPMorgan Chase & Co (NYSE: JPM) adds to what was recently discussed. Earnings are due Friday so keep that in mind.
Yesterday's call skews scan touched on MGM Mirage (NYSE: MGM) and Wynn Resorts (WYNN). Today's scan shows MGM again along with Las Vegas Sands Corp (NYSE: LVS). These stocks carry relatively heavy levels of short interest so some of the call activity could be for hedging those positions. The daily chart of Las Vegas Sands shows the equity has broken the near-term downtrend and bounced off support.
Overall, my thoughts on the group are still aligned with what I noted in December - positive price action can catch some off guard.
Companies included in today's scan results: Citigroup Inc (C), Alcoa (AA), UnitedHealth Group Inc (UNH), Intel Corp. (INTC), Microsoft Corp (MSFT), DryShips Inc. (DRYS), Apple Inc (AAPL), McMoRan Exploration (MMR), Hershey Foods (HSY), Google Inc (GOOG), Talisman Energy (TLM), MGM Mirage (MGM), JPMorgan Chase & Co (JPM), General Electric (GE), Freeport-McMoRan Copper & Gold Inc (FCX), Celgene Corp. (CELG), American International Group Inc (AIG), Take-Two Interactive Software (TTWO), Rambus Inc (RMBS), Research in Motion Limited (RIMM), Corning Incorporated (GLW), Wells Fargo & Co (WFC), Plains Exploration & Production (PXP), Exxon Mobil (XOM), Las Vegas Sands Corp (LVS).