Option Skews - Relatively Heavy Call Activity on Cemex SAB de CV, Dell Inc, MGM Mirage

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: Citigroup Inc (C), Apple Inc (AAPL), DryShips Inc. (DRYS), Cemex SAB de CV (CX), General Electric (GE), Bristol-Myers Squibb (BMY), Dell Inc (DELL), Microsoft Corp (MSFT), Target Corp. (TGT), Pfizer (PFE), Intel Corp. (INTC), Hecla Mining (HL), JPMorgan Chase & Co (JPM), Newmont Mining (NEM), Home Depot (HD), CommVault Systems, Inc. (CVLT), Barrick Gold (ABX), Motorola (MOT), Medtronic (MDT), United States Steel Corp (X), YRC Worldwide Inc (YRCW), MGM Mirage (MGM), Genco Shipping & Trading Limited (GNK), Williams-Sonoma (WSM), Brocade Communications Systems (BRCD).

Cemex SAB de CV, Dell Inc, and MGM Mirage are the charts that stood out to me-

• Last week I noted that shares of Cemex SAB de CV had pulled back to the lower end of support. A look to the daily chart shows that buyers have now stepped in and buoyed the stock, which is a constructive sign.
• Shares of Dell did break the steady uptrend I recently discussed but they haven't rolled over. The daily chart shows the recent pullback to support near 14 and the bounce from the oversold condition. The August peak near 17 is the next upside hurdle to overcome.
• As I discussed last week, I don't like to front run breakouts but I am still keeping an eye on MGM Mirage. Nearly a month ago we saw a steady pattern of higher lows pushing in on resistance. The updated weekly chart shows the battle continues. A pullback earlier this month was quickly met with buying demand and the stock is now trudging back toward resistance.

 Email to a Friend

 Del.icio.us

 Facebook

 Reddit

 Newsvine

 Digg

 Mixx