Unusual Options Activity Update: .VIX, UUP, ODP, VIAB, URBN, IMAX, PLCM
Implied Volatility Mover
Wall Street is buzzing about the sharp decline in the CBOE Volatility Index (.VIX) in recent days. VIX hit a morning low of 13.99 and fell to its lowest levels since June 2007 Tuesday morning. VIX is off .68 to 15 and has now suffered a five-day 28.1 percent plunge during the past week. VIX even fell Monday morning when the S&P 500 was dipping lower in early trading. The volatility index typically moves higher when the S&P falls. However, some market watchers believe that the index may be distorted a bit yesterday due to an adjustment to the index, which occurs eight days before the expiration. VIX March options expire next Wednesday. March equity and ETF options expire at the end of the week.
Volume Signals
PowerShares Bullish Dollar Fund (UUP) options volume is running 3.5X the (22-day) average, with 37,000 contracts traded and call volume accounting for 97 percent of the volume.
Office Depot (ODP) options volume is 12X the average daily, with 29,000 contracts traded and call volume representing for 82 percent of the activity.
Viacom (VIAB) options volume is running 4X the average daily, with 20,000 contracts traded and call volume accounting for 54 percent of the activity.
Increasing options activity is also being seen in Urban Outfitters (URBN), IMAX, and Polycom (PLCM).
--------------------------------------------------------------------------------------
Disclaimers
This article is provided for informational purposes only. No statementin this article should be construed as a recommendation to buy or sell asecurity or to provide investment advice. The content provided has beenobtained from sources deemed reliable but is not guaranteed as toaccuracy and completeness. optionsXpress makes every effort to providetimely information to its recipients but cannot guarantee specificdelivery times due to factors beyond our control.
Derivatives involve substantial risk and are not appropriate for all investors. Please read the "Disclosure Statement for Futures and Options" prior to investing in futures or options.
"
About Joseph Cusick
Joseph Cusick currently serves as the Senior Vice President of Education and a Senior Market Analyst for optionsXpress. Mr. Cusick seeks out common sense and technologically scalable educational pathways for self-directed investors of all experience levels. He is largely responsible for ramping up delivery of online and offline seminars to customers and potential clients worldwide. Prior to serving in his current role, Mr. Cusick immersed himself in the broker side of optionsXpress by managing his own book of business. Prior to joining optionsXpress, Mr. Cusick served as a market maker and portfolio manager at the Chicago Board of Options Exchange. Joseph is a graduate of Marquette University and holds his Series 4, 7 and 63 registrations with FINRA.
View Joseph Cusick's post archive >
