Midday Unusual Options Activity Update: .VIX, CIGX, XHB, VMED, SVM, RDN, HERO
Implied Volatility Movers And Unusual Volume Movers For Midday 8/26/2011
Implied Volatility Movers
CBOE Volatility Index(.VIX) lost 4.76 to 35 and is now 27 percent below the 15-month high of 48 set on August 8. The S&P 500 Index (.SPX) is up nearly 5 percent since that time and the high levels of market anxiety that surfaced at that time seem to have eased somewhat. Meanwhile, trading in VIX options remains brisk. 300,000 puts and 186,000 traded in the product so far. One player sold 20,000 VIX September 25 puts at 27.5 cents and might be closing a position and or betting that the volatility index will hold above 25 through the September expiration, which is 25 days for VIX options (21 days for equity options).
Unusual Volume Movers
Star Scientific (CIGX) options volume is running 7X the (22-day) average, with 58,000 contracts traded and call activity accounting for 60 percent of the volume.
SPDR Homebuilder ETF (XHB) options volume is 3.5X the average daily, with 36,000 contracts traded and call volume representing 55 percent of the activity.
Virgin Media (VMED) options volume is running 7.5X the average daily, with 31,000 contracts traded and put volume representing 99 percent of the total volume.
Increasing options activity is also being seen in Silvercorp Metals (SVM), Radian Group (RDN), and Hercules Offshore (HERO).
------------------------------------------------------------------------------------
Disclaimers
This article is provided for informational purposes only. No statementin this article should be construed as a recommendation to buy or sella security or to provide investment advice. The content provided hasbeen obtained from sources deemed reliable but is not guaranteed as toaccuracy and completeness. optionsXpress makes every effort to providetimely information to its recipients but cannot guarantee specificdelivery times due to factors beyond our control.
Derivatives involve substantial risk and are not appropriate for allinvestors. Please read the "DisclosureStatementforFuturesandOptions" prior to investing in futures oroptions.
For investments using a straddle or strangle options strategy thepotential loss is unlimited. Multi-leg option strategies are subject tomultiple commissions. Profits may be eroded by the commission expendedto open and close the positions and otherrisks 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.
View Joseph Cusick's post archive >
