Midday Unusual Options Activity Update: .VIX, INTC, STX, ILMN, IBM, EBAY, WDC
Implied Volatility Mover
Options on the CBOE Volatility Index (VIX) are busy today. The April options on the index expired today at a settlement value of 19.06, which is up quite a bit from the 14.55 seen in March. The index hit a morning high of 19.17 and was recently up .41 to 18.87. Meanwhile, 239,000 calls and 90,000 puts traded in the VIX pit. May 25 calls are the most actives. More than 50,000 traded. May 30 calls are the second most actives. Now that VIX April options have expired, May is the front-month contract for VIX options. Some investors might be buying upside May calls today to hedge the risk of additional market volatility in the short-term.
Volume Signals
Intel (INTC) options volume is running 5X the (22-day) average, with 564,000 contracts traded and call volume accounting for 72 percent of the volume.
Seagate Technology (STX) options volume is 3X the average daily, with 86,000 contracts traded and call volume representing for 76 percent of the activity.
Illumina (ILMN) options volume is running 3X the average daily, with 117,000 contracts traded and call volume accounting for 69 percent of the activity.
Increasing options activity is also being seen in IBM, EBAY, and Western Digital (WDC).
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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.
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