Midday Unusual Options Activity Update: .VIX, SLE, STX, XME, LNG, KO, CREE
Implied Volatility Mover
CBOE Volatility Index (.VIX), which took another stab at the 20 "psyche" level Monday, is down 1.67 to 17.88 amid active trading in the VIX pit. Today is the last day to trade April options on the index before the contract expires tomorrow. 259,000 calls and 175,000 puts traded on the index. April 18 puts, which are very near-the-money, are the most actives. More than 59,000 traded, as some players might be likely closing positions amid uncertainty about whether the index will settle the April expiration above or below 18. The March settlement value was 14.55.
Volume Signals
Sara Lee (SLE) options volume is running 18X the (22-day) average, with 103,000 contracts traded and call volume accounting for 100 percent of the volume.
Seagate Technology (STX) options volume is 2X the average daily, with 55,000 contracts traded and call volume representing for 77 percent of the activity.
SPDR Metals and Mining Fund (XME) options volume is running 3.5X the average daily, with 72,000 contracts traded and put volume accounting for 97 percent of the activity.
Increasing options activity is also being seen in Cheniere Energy (LNG), Coca Cola (KO), and CREE.
----------------------------------------------------------------------------
Disclaimers
This article is provided for informational purposes only. No statementin this article should be construed as a recommendation to buy or sell asecurity or to provide investment advice. The content provided has beenobtained 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 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 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 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.
View Joseph Cusick's post archive >
