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Midday Unusual Options Activity Update - .VIX, BARE, RHT, PNC, CIT, STZ, GIGM, RF, XRX, LEAP, TEVA, SGP, CMCSA

Implied Volatility Movers

The CBOE Volatility Index (.VIX) is up 1.89 to 27.50 and hit its best levels since early September after the major averages fell for a 6th time in 7 days. Investors expressed disappointment with the day's economic news and VIX is heading higher as stocks falter. Risk perceptions are also higher as the new month gets underway. October is a historically volatile month for the equity markets.  

Meanwhile, implied volatility is also higher in the Bare Escentuals (BARE), Red Hat (RHT), and PNC. Implied volatility is lower in CIT, Constellation Brands (STZ), and GigaMedia (GIGM).

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Unusual Volume   

Regions Financial (RF) options volume is running 5X the usual. 125,000 contracts traded and call volume accounting for 66 percent today's volume.  
 
Options activity in the Xerox (XRX) rose to 4X the usual, with 73,000 traded and call volume representing about 90 percent of the activity.

LEAP options activity is running 2X the usual. 44,000 contracts traded and call volume accounting for about 88 percent of the activity.

Increasing volume was also seen in TEVA, Schering Plough (SGP), and Comcast (CMCSA). 


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