Implied Volatility Movers: 10/26
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 highs and lows…
52-Week Lows
Ixia (XXIA) – Shares of this Internet protocol services firm are dropping 9.41% today, trading at $13.87. The company reported favorable Q3 earnings earlier in the week, but haven’t been able to find a bid today.
Despite this, IV30 fell to a fresh 52-week low this morning before rebounding slightly to 42.05%. The stock is nearing the 200-day moving average (tagged it earlier in the session); perhaps it can find support there.
JetBlue Airways (JBLU) – Shares of JetBlue are off 1.90% today, trading at $5.15. The company reported a 29% rise in profits for Q3, but shareholders seem complacent. The stock is consolidating above the 50-day and 200-day moving averages.
IV30 pushed to a fresh 52-week low today, off 8.8% to 30.72%; HV10 is registering just 16.86%. With that divergence in place, as well as support below, put sales look interesting here.
52-Week Highs
Nexen Inc. (NXY) – Shares of Nexen have become volatile as of late, dipping lower after consolidating for the past three months. CNOOC is scheduled to takeover the company in Q4 2012 for $27.50, but there appears to be some worry that a deal may fall apart.
IV30 is shooting to a fresh 52-week high of 58.01%, up 23.8% on the session; HV10 has popped to 26.83%.
VirnetX Holding Corporation (VHC) – Shares of VirnetX recently regained the 50-day and 200-day moving averages, as well as the $30.00 historical support/resistance level. Traders are looking for movement to continue one way or the other and are bidding up options.
IV30 has pushed to a fresh 52-week high of 155.82%, up 5.2% today; HV10 is registering just 32.99%. Options are skewed to the put side in every single month.
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