Midday Unusual Options Activity Update: VIX, IBM, IP, CLWR, ABT, NCR, DOW

Implied Volatility Mover
CBOE Volatility Index (.VIX) is off .25 to 14.97 and trading in the VIX pit is active today because of the expiration. October options on the index expire today and the settlement value was 15.96 - quite a bit higher than the September expiration, when it was 14.03. Now, attention turns to November. A total of 478,000 options traded on the index and about 85 percent of the activity is in the November term. Nov 55 deep out-of-the-money calls are the most actives in VIX options today. 57,500 traded so far.

Volume Signals
IBM options volume is running 4X the (22-day) average, with 107,000 contracts traded and put volume accounting for 52 percent of the volume.

International Paper (IP) options volume is 6.5X, the average daily, with 91,000 contracts traded and call volume representing for 98 percent of the activity.

Clearwire (CLWR) options volume is running 4.5X the average daily, with 72,000 contracts traded and call volume accounting for 99 percent of the activity.

Increasing options activity is also being seen in Abbott Labs (ABT), NCR, and Dow Chemical (DOW).

-----------------------------------------------------------------------------------

Disclaimers
This article is provided for informational purposes only. No statement in this article should be construed as a recommendation to buy or sell a security or to provide investment advice. The content provided has been obtained from sources deemed reliable but is not guaranteed as to accuracy and completeness. optionsXpress makes every effort to provide timely information to its recipients but cannot guarantee specific delivery 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.

For investments using a straddle or strangle options strategy the potential loss is unlimited. Multi-leg option strategies are subject to multiple commissions. Profits may be eroded by the commission expended to open and close the positions and other risks apply.

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.