Implied Volatility Mover
Implied volatility in the options on Nike (NKE) is moving up, as the stock displays relative weakness Friday. NKE is down $2.06 to $97.14 in active trading of 2.1 million shares after a firm downgraded the stock to Hold from Buy and ahead of Nike’s September 27 earnings report. Shares are under pressure and options on the stock are running at higher levels as well. 11,000 calls and 13,000 puts so far. September 100 calls and September 95 puts are the most actives and implied volatility in the options on the stock is up 15 percent to 25.
Volume Signals
SPDR Financials (XLF) options volume is running 3X the (22-day) average, with 532,000 contracts traded and call volume accounting for 91 percent of the volume.
iShares Emerging Markets Fund (EEM) options volume is 2.5X, the average daily, with 463,000 contracts traded and call volume representing for 89 percent of the activity.
Powershares Bullish Dollar Fund (UUP) options volume is running 42X the average daily, with 331,000 contracts traded and call volume accounting for 96 percent of the activity.
Increasing options activity is also being seen in SPDR Oil and Production Fund (UUP), Russell 2000 Small Cap Index (.RUT), and the UltraShort Bond Fund (TBT).
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