Unusual Options Activity Update: .VIX, .SPX, PCS, DIS, CTRP, NBR, NWSA, BMC
Implied Volatility Mover
CBOE Volatility Index (.VIX) jumped 1.25 to 21.14 amid high levels of put activity Monday. Nine of the ten most actives options traded Monday morning are puts on the SPDR 500 Trust (SPY). The other is the May 1,300 puts on the S&P 500 Index (.SPX). SPX is down 9.39 to 1,344 and total volume on the index is a very busy 374,000 puts and 121,000 calls. Since VIX tracks the expected volatility priced into SPX options, it is moving higher in reaction to the decline in the index and the heightened put activity in the SPX trading pit to start the week. Some portfolio managers are probably buying SPX puts to hedge stock portfolios, which is also giving VIX a lift.
Volume Signals
MetroPCS (PCS) options volume is running 11.5X the (22-day) average, with 91,000 contracts traded and call volume accounting for 67 percent of the volume.
Disney (DIS) options volume is 2.5X the average daily, with 51,000 contracts traded and call volume representing for 87 percent of the activity.
Citrip.com (CTRP) options volume is running 7.5X the average daily, with 24,000 contracts traded and put volume accounting for 91 percent of the activity.
Increasing options activity is also being seen in Nabors Industries (NBR), News Corp (NWSA), and BMC Software (BMC).
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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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