Option Skews - Relatively Heavy Call Activity on General Electric Co, eBay Inc, Amgen Inc, Advanced Micro Devices 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: General Electric Co (GE), PowerShares QQQ Trust (QQQQ), eBay Inc (EBAY), Bank of America Corp (BAC), Apple Inc (AAPL), Brocade Communications Systems (BRCD), Las Vegas Sands Corp (LVS), Barrick Gold (ABX), Amgen Inc (AMGN), Dell Inc (DELL), Advanced Micro Devices Inc (AMD), DryShips Inc. (DRYS), Rambus Inc (RMBS), Motorola (MOT), Alcoa (AA), ALCON INC (ACL), Verizon Communications (VZ), Genworth Financial Inc (GNW), Diana Shipping Inc. (DSX), Yahoo! Inc (YHOO), Dollar Tree Stores (DLTR), Exxon Mobil (XOM), TD Ameritrade Holding (AMTD), Weatherford International (WFT), E-Trade Financial Corp (ETFC).

General Electric Co, eBay Inc, Amgen Inc, and Advanced Micro Devices Inc are the charts that stood out to me -

• The weekly chart of General Electric looks constructive. The shares overtook resistance in September and then retested that as support a few weeks ago. The recent peak near 17.50 is the upside level to keep an eye on.
• In a post last month - eBay Inc Ahead of Earnings - we saw that the stock was testing resistance. This weekly chart shows the battle is still going on. The equity is consolidating the recent gains with short-term support near 21.
• The daily chart of Amgen shows the stock is rebounding back toward the support that was violated. I would expect this area to now act as resistance.
• I was wrong about Advanced Micro Devices. There is no other way to put it. Earlier this month I discussed the break of support but that was just noise ahead of the massive gap higher shown in the daily chart. The stock has now cleared near-term resistance and shows support just above 6.

 Email to a Friend

 Del.icio.us

 Facebook

 Reddit

 Newsvine

 Digg

 Mixx