Implied Volatility Movers: 10/18

30-day implied volatility is often considered to be the hallmark of the options market. It allows traders to get a quick, relative snapshot of how big players are positioning in names.

So, let’s take a look at a few names hitting new 30-day IV 52-week lows… 

52-Week Lows

Golar LNG Limited (GLNG) – Shares of this liquefied natural gas carrier have been on a 5-day winning streak, regaining the 20-day, 50-day, and 200-day moving averages in the process. Today’s action looks like it may be a near-term top with a hammer candle on the monthly chart.

Despite slightly rising HV10, now at 21.22%, IV30 has been falling, touching a fresh 52-week low of 26.66% today. The strike seeing the most volume today is the December $45 call, which has seen small to medium sized lots sold on or near the bid all day.

Cracker Barrel Old Country Store (CBRL) – Cracker Barrel has been moving steadily higher for the better part of twelve months, recently making a 52-week high and consolidating. With HV10 basing around 13%, IV30 has pushed lower and lower, touching a 52-week low of 20.04% today, off some 5.4%.

With such a huge run in the name and the company’s Board of Directors in play, now seems like a prime time to accumulate a bit of downside protection. Near-the-money puts in Mar13 are providing the best value right now.

About Michael Zerinskas

Originally from Chicago, Michael J. Zerinskas began his career as an intern for a small high-frequency trading firm based at the CME; he then moved on to become Chief Options Strategist at Benzinga.com. Michael is now Unusual Activity Editor at The Options Insider, specializing in VIX, volatility, and flagging unusual activity.