Market Summary

Stock market averages finished with losses, but closed well off of session lows Tuesday. With no domestic economic news to guide the early action, concerns about the European debt mess weighed on morning trading. The focus is back on Europe and an uncertain political situation in Greece where leaders are struggling to form a government after weekend elections. Some investors are worried that the lack of progress will derail the anticipated bailout of the debt-ridden nation. France's CAC 40 Index fell 2.8 percent and paced a broad decline across Eurozone equity markets. US stocks followed suit and the Dow Jones Industrial Average was down 145 points midday. Crude oil slipped 46 cents to $97.48 and gold sank $32 to $1607 an ounce. The Dow was able to pare some of its losses in the final hour, however, and closed the day down 77 points. The tech-heavy NASDAQ lost 11.5 points.

Bullish Trends

A large spread traded in Intel (INTC) Tuesday. Shares of the world's largest chipmaker lost 39 cents to $27.37 and are on a four-day 6.2 percent losing streak. INTC was trading at a 52-week high of more than $29 per share last-Wednesday. The stock has been falling since that time and the decline seems to have motivated one investor to adjust a sizeable trade. In morning action, 115,000 July 30 calls were sold on Intel at 28 cents per contract to buy 60,000 August 29 calls for 60 cents per contract. The spread is probably a roll. That is, the investor is liquidating a position in July 30 calls, which are falling 9.6 percent out-of-the-money, and buying the August 29 calls to open a new position. They might have a bullish view on the stock and are buying another month for the trade to play out. The August 29s trade at a higher premium relative to the July 30 calls because there is a higher probability that the contract will be in-the-money at expiration. Relative to the Jul 30s, it has a lower strike and more life remaining before expiration.

Bullish trading was also seen in Gold Fields (GFI), Aruba Networks (ARUN), and St. Jude Medical (STJ).

Bearish Trends

Arch Coal (ACI) was the subject of high put volume today. Shares of the coal producer lost another 48 cents to $7.60 and set new 52-week lows. ACI has now tumbled 76 percent over the past twelve months. Options volume on the St. Louis-based company included 55,000 puts and 13,000 calls. The largest trades were part of a spread, in which the investor sold 11,750 May 9 puts on ACI at $1.69 and bought 5,500 May 7 puts at 22 cents. They also bought 9,000 June 8 puts for $1.01 and sold 9,000 June 6 puts at 17 cents. Taken together, the four-way spread looks like rolling activity. The investor is selling a May 7 – 9 put ratio spread to close, while opening a new bearish position in the June 6 – 8 put spread. The investor might have been anticipating a decline in shares and is now positioning for additional losses through mid-June.

Bearish trading was also seen in Qualcomm (QCOM), Watson Pharmaceuticals (WPI), and International Game Technology (IGT).

Market Summary

Stock market averages finished higher with help from earnings Wednesday. Boeing (BA) shares jumped 5.3 percent and led the Dow Jones Industrial Average after the company's earnings topped forecasts. Apple Computer (AAPL) shares rallied $49.72 to $610 and helped the NASDAQ after the company's earnings blew past Street estimates. On the economic front, a report on Durable Goods released early Wednesday was down to -4.2 percent in March and well below economist estimates of -1.7 percent. Attention later shifted to the Federal Reserve's monetary policy meeting. The Fed concluded the meeting and issued a statement that seemed a bit more hawkish than in March. Officials noted moderate economic growth and modest signs of inflation. The talk seemed to dash some hopes for another round of Quantitative Easing [QE3]. But, while bonds and gold slipped a bit, the Dow held steady and finished the day up 89 points. The tech-heavy NASDAQ surged 68 points.

Bullish Trends

Watson Pharmaceuticals (WPI) was up $1.09 to $69.69 in active trading of 2.95 million shares Wednesday. Options volume on the generic drug-maker was 2X the daily average. 16,000 calls and 1,900 puts traded on the stock today. May 80 calls, which are 14.8 percent out-of-the-money and expiring in 23 days, were the most actives. 10,275 traded. May 70 and 75 calls were busy as well and levels of implied volatility in options on WPI were up 9 percent to 40.5, as some upside call buyers were apparently taking positions on hopes for short-term strength in the stock. The timing seems very good so far. WPI is up $73.20 in extended hours trading Wednesday on news it is buying Swiss-based Actavis. The deal is expected to be 30 percent accretive to the company's 2013 Earnings Per Share.

Bullish trading was also seen in Corning (GLW), Fairchild Semiconductor (FCS), and Eastman Chemical (EMN).

Bearish Trends

Gap Stores (GPS) moved to new 52-week highs today and was up 70 cents to $27.89. One or more investors are possibly looking to hedge recent gains in the stock as May 24 – 26 put spreads on the retailer were busy today. One player bought the spread for 32 cents, 8500X (bought 8,500 May 26 puts for 42 cents per contract and sold the 24s for a dime). The spread traded 10000X on the day and appears to be opening activity. The bearish flow might be to hedge stock ahead of event risk – including April same store sales due next Thursday and Gaps' earnings on 5/17.

Bearish trading was also seen in XCO Resources (XCO), Standard Pacific (SPF), and Total (TOT).

Market Summary

Stock market averages fell on a heavy news day. On the economic front, a report released early showed Jobless Claims declining by 2,000 to 386K last week. Economists were expecting to see a decline larger decline to 375K from 388K. Later, a report on Existing Home Sales was down to an annual rate of 4.48 million, which was a decline from 4.6 million in February and below expectations of 4.62 million. The Philadelphia Fed Survey fell to only 8.5 in April, from 12.5 in March and worse than the 10.3 that was expected. The only bright spot was the List of Leading Indicators for March, which was up .3 percent and .1 percent more than expected. Earnings are also in focus. Travelers (TRV) and Verizon (VZ) were the two of only three winners in the Dow Jones Industrial Average after profits topped expectations. BofA (BAC) erased early gains and finished down 1.7 percent. American Express (AXP), Qualcomm (QCOM), and EMCalso slipped on earnings news Thursday. The Dow Jones Industrial Average was only modestly lower at midday, but the selling picked up in afternoon action. Sharp losses across Eurozone equity markets and the options expiration exacerbated volatility a bit. At the bell, the Dow was down 69 points. A 3 percent loss in Apple (AAPL) weighed on the NASDAQ, which lost 23.9 points.

Bullish Trends

Blackstone Group (BX) lost 70 cents to $14.14 in active trading of 5.7 million shares after the New York-based asset manager posted disappointing quarterly earnings numbers Thursday. Options on the stock were busy as well. 59,000 calls and 4,300 puts traded in the name, which is 14X the daily average. Much of the call activity was due to one spread trade, in which the investor apparently sold 21,000 January 15 calls on BX at $1.14 per contract and bought 29,700 January 2014 $20 calls for 84 cents per contract. This diagonal ratio spread might roll a bullish position out one year and up 5 strike prices. It seems to express the view that the stock is likely to remain below $15 through January 2013, but then perhaps climb to more than $20 by January 2014. The stock has had a rough stretch in recent weeks and is now down 10.6 percent since January. A 52-week high of $19.49 per share dates back to April of last year.

Bullish trading was also seen in Sysco (SYY), Riverbed Technology (RVBD), and Pandora (P).

Bearish Trends

Cirrus Logic (CRUS) shares moved down 89 cents to $22.96 in active trading of 2.3 million shares and implied volatility in the options on the chipmaker moved higher on increasing put volume Thursday. 7,735 puts and 1,400 calls traded in Cirrus options today. The activity was in smaller sizes. The top trade was a 568-lot of May 24 puts traded on the $1.70 asking price. 2,720 CRUS March 24 puts changed hands total. May 21 and 22 puts were busy as well and levels of implied volatility in the options stock rose 18 percent to 58.5. The stock performed well during the first few months of the year and is up 45 percent year-to-date. The apparent put buying might be designed to help hedge recent profits in the stock ahead of the company's April 25 earnings release.

Bearish trading was also seen in Apollo (APOL), Career Education (CECO), and Level 3 (LVLT).

Market Summary

Economic data was in focus early Monday after a report showed Retail Sales increasing by 8 percent during the month of March. Economists were expecting a smaller increase of .3 percent. However, a separate report showed regional manufacturing in the Northeast improving less than expected in April. The NY Empire State Index fell to only 6.6 this month, down from 20.2 in March and well below expectations of 17.5. Business Inventories were up .6 percent in February and .1 percent more than expected. Finally, the NAHB Homebuilder Sentiment Index was down to 25 in April, from 28 the month before and much worse than the 29 that was expected. Trading was mixed through midday and Citi shares ticked higher on profit news to help the SPDR Financial Fund (XLF) to a modest gain. Trading remained mixed into afternoon action and, at the closing bell, the Dow Jones Industrial Average was holding a 71-point gain, but the tech-heavy NASDAQ lost 22.9.

Bullish Trends

Netflix (NFLX) lost $3.02 to $101.15 on relatively light volume of 3.8 million shares. Typical volume is about 4.8 million. Meanwhile, options action was interesting, as 52,000 calls and 24,000 puts traded on the stock. Much of the call activity was due to spread trading. In afternoon action, 9,000 May 115 calls traded on the stock for $4.05 and 9,000 May 130 calls at $1.45. The May 115 – 130 call spread, for a $2.60 net debit, appears to potentially be a new position. The same spread also traded another 5,000X for $2.70. The position, which was apparently bought to open a new position, is a bullish play that makes its best profits if NFLX rallies to $130, or 28.5 percent, through the May expiration (32 days). That's a rather large move. And the spread might be a play on earnings. Shares jumped 22 percent on 1/26 when Netflix last reported earnings. The company is due to report again on April 23.

Bullish trading was also seen in STEC, Seagate Technology (STX) and Western Digital (WDC).

Bearish Trends

A large trade surfaced in Micron Technology (MU) Monday. Shares of the chipmaker added 15 cents to $7.12 on the day, but are down 19.4 percent during the past month. One investor might be possibly looking to hedge a big stock position as 25,000 January 2014 $10 puts were bought on Micron today. The investor paid $4 per contract on the International Securities Exchange and was opening a new position. The premium purchase, totaling $10 million, is somewhat unusual because the puts are already $2.88 in-the-money. So, an investor is possibly using the puts to hedge a long stock position on concerns the recent decline in shares may continue in the weeks/months/years ahead.

Bearish trading was also seen in Cobalt (CIE), Baxter (BAX), and SLM.

Market Summary
The Dow Jones Industrial Average snapped a five-day losing streak with help from Alcoa Wednesday. Shares of the aluminum-maker jumped 6.2 percent after the company reported better-than-expected earnings Tuesday afternoon. The economic calendar was light and included the Fed's latest Beige Book, which offers a qualitative assessment of the economy. The report noted moderate economic growth from Feb to March, but didn't seem to hold any major news items. And the market showed little reaction to the report. Meanwhile, Europe's equity markets bounced back and recovered some of the steep losses suffered yesterday. Markets were buoyed after ECB Board Member said the central bank still has a loan repurchase program in place if the need arises. Germany's DAX helped to pace the advance with a gain of 1 percent. Crude oil was up $1.50 to $102.5 per barrel, but gold shed $1.5 to $1659 an ounce. On Wall Street, the Dow Jones Industrial Average added 89 points and finished 45 points from session highs. The NASDAQ gained 25 points.

Bullish Trends
MEMC (WFR) has lost more than 73 percent over the past twelve months. The company makes silicon wafers and has heavy exposure to the solar power industry. However, shares were up 40 cents to $3.74 Wednesday on heavy volume of nearly 16 million shares amid strength in the sector (SATC, STP, FSLR also traded higher). Meanwhile, options volume in MEMC was 2.5X the daily average after 3,900 calls and 1,160 puts traded on the stock. May 4 calls, which are now 7 percent out-of-the-money and expiring in 37 days, were the most actives. 1,228 traded. Some investors in the options market might have a bullish view on MEMC, but rather than buying the stock outright today, they might have been purchasing these calls that give the right to buy (or call) the stock for a specific strike price (4) through the expiration (May 19, 2012).

Bullish trading was also seen in Zion Bancorp (ZION), Gilead Sciences (GILD), and Williams Sonoma (WSM).

Bearish Trends
Moody's (MCO) shares jumped $1.08 to $41.85 and options volume on the credit rating agency was 7X the daily average. 4,600 puts and 700 calls traded on the stock Wednesday. Most of the volume was due to one spread trade, in which the strategist bought 2,000 March 40 puts on the stock for 96 cents and sold 2,000 March 37 puts at 38 cents. The May 37 – 40 put spread looks like a new position for a 58-cent debit. If so, it's a bearish play with a max payout if MCO falls to $37 (-11.6%) or less through the May expiration (34 days). Shares had a four-day 5.1 percent drop prior to today. Earnings will be reported on April 26.

Bearish trading was also seen in JP Morgan (JPM), FedEx (FDX), and Altera (ALTR).