March 3, 2015 The Week Ahead

The S&P 500 closed at 2107; on a rather dull day. Yesterday the Nasdaq closed above the 5,000 level, something which has happened less than a handful of times. However, it closed below that level, at 4,974 today.

Early in the morning, all eyes were on Israeli Prime Minister, Benjamin Netanyahu, as he addressed Congress on his concerns over Iran.

The VIX caught a slight bid, closing at 13.86, up over 6% on the day. The 52-week low on VIX is 10.28. With that said, we could potentially see those levels again if the market continues to move this way.

On days like this, traders try to focus on stocks that are moving, generally a catalyst is involved. One such name was Orexigen Therapeutics Inc, (OREX), the stock price closed up over 32% based off a report by RBC Capital, stating that their diet pill had heart benefits. In addition to the positive note, the stock had a massive short float. Of course, this lead to a major short squeeze.

Not only did this influence the stock, but it had a significant impact on the options. The options implied volatility rose over 48 points, closing at 106.5% for the 30 day at-the-money options.

Another name that saw a massive spike in price was Springleaf Holdings Inc, (LEAF), the stock closed up over 32% on the day. They announced that they were acquiring OneMain Financial Holdings for $4.25B. Clearly, the street liked the deal. Jefferies raised their price target to $66 from $44. Options were also active, trading 25.4 times normal volume.

Speaking of options, we saw some bullish call buying in Campbell Soup Co, (CPB), options volume was 9.3 times the norm. Active options included the April $50 calls and May $49 calls. No news on what the potential catalyst might be.

Another interesting order, was one we saw on Monday, in Delek US Holdings Inc, (DK). Monster sized calls were bought, nearly 5,000 contracts on the March 37.5 call strike. The stock is currently trading at $35.68. A potential catalyst is the Bank of America/Merrill Lynch Refining Conference, which will be held on Thursday, March 5, 2015.

Here’s a Look at what’s on tap for the rest of the week.

Key Economic Numbers Remaining This Week:

5 March 2015- Jobless Claims 8:30 AM ET
6 March 2015- Employment Situation 8:30 AM ET, International Trade 8:30 AM ET

Key Earnings Announcements:

4 March 2015- ANF, PETM, W, HRB
5 March 2015- CIEN, COST, FNSR, CSIQ
6 March 2015- FL, SPLS

Key Conferences:

4 March 2015- Simmons & Co Energy Conference
4 March 2015- Bank of America/Merrill Lynch Refining Conference