Option Skews - Relatively Heavy Call Activity on Research in Motion Limited, Petroleo Brasileiro SA, Potash Corp. of Saskatchewan, King Pharmaceuticals Inc

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.

Companies included in today's scan results: Dell Inc (DELL), DryShips Inc. (DRYS), E-Trade Financial Corp (ETFC), Intel Corp. (INTC), Research in Motion Limited (RIMM), Ford Motor Co (F), Wells Fargo & Co (WFC), Jacobs Engineering Group (JEC), Las Vegas Sands Corp (LVS), United States Steel Corp (X), Petroleo Brasileiro SA (PBR), Wal-Mart Stores Inc (WMT), The DirectTV Group Inc (DTV), United Parcel Service (UPS), Potash Corp. of Saskatchewan (POT), Colgate-Palmolive Co (CL), Barrick Gold (ABX), CVS Corp. (CVS), Moody's Corp. (MCO), UnitedHealth Group Inc (UNH), Yahoo! Inc (YHOO), Visa Inc. (V), Monsanto Co (MON), Diana Shipping Inc. (DSX), King Pharmaceuticals Inc (KG).

Research in Motion Limited, Petroleo Brasileiro SA, Potash Corp. of Saskatchewan, and King Pharmaceuticals Inc are the charts that stood out to me -

• Earlier this month I noted how Research in Motion was continuing to deteriorate. I left that post saying the equity was oversold but rebound attempts faced multiple layers of resistance. The daily chart shows a text book bounce and rollover. The recent lows are now the key level to watch as the stock appears to be transitioning into an orderly downtrend.
• My last comments on Petroleo Brasileiro explored how I had been wrong about stalled momentum. A check of the updated daily chart shows the stock dipped from the overbought condition and retested the top of the former range. The equity is now in a position to break above the October highs.
• The weekly chart of Potash Corp. of Saskatchewan shows the shares are challenging their mid-year highs. This stock has been a mover in the past so it is one to watch.
• King Pharmaceuticals is another situation to keep an eye on. Yesterday's pop pushed the equity into resistance in place for two years.

 Email to a Friend

 Del.icio.us

 Facebook

 Reddit

 Newsvine

 Digg

 Mixx