Midday Unusual Options Activity Update - .VIX, .SPX, MMR, PXP, TIF, WHR, DECK, OVTI
Implied Volatility Movers
The CBOE Volatility Index (.VIX), which tracks the implied volatility of S&P 500 Index (.SPX) options, is under pressure. SPX is up an impressive 25.5 points to 1,206 and has moved beyond a previous resistance level around 1,200. Meanwhile, VIX hit a low of 20.40 and was recently off 2.85 to 20.69. VIX is sometimes called the market's "fear gauge" because it tends to move higher during times of panic and anxiety on Wall Street. Today's weakness in the index reflects a decline in risk perceptions, which was triggered by a rebound in Europe's equity markets along with positive economic data in the US and China.
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Unusual Volume
McMoran (MMR) options volume is running 2.5X the usual, with 26,000 contracts traded and call volume accounting for 76 percent of the activity, according to data from website WhatsTrading.com.
Plains Exploration (PXP) options activity is running 2X the usual, with 23,000 contracts traded and call volume representing 90 percent of the volume.
Tiffany (TIF) options volume is 3.5X the typical levels, with 15,000 contracts traded and call volume accounting for 95 percent of the activity.
Increasing volume is also being seen in Whirlpool (WHR), Decker's (DECK), and Omnivision Tech (OVTI).
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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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