Implied Volatility Mover
CBOE Volatility Index (.VIX) is up .79 to 20.27 and recaptured the 20 handle today amid ongoing concerns about the budget challenges facing Congress and the White House. VIX, which tracks the implied volatility priced into S&P 500 Index (.SPX) options, has now rallied 34.5 percent in the past month. Today’s move has stirred up some increasing activity in the VIX trading pit at the Chicago Board Options Exchange. 203,000 calls and 119,000 puts traded on the index so far. January 17 puts and January 25 calls are the most actives.
Volume Signals
Market Vectors Junior Gold Miners Fund (GDXJ) options volume is running 2.5X the (22-day) average, with 20,000 contracts traded and call volume accounting for 98 percent of the volume.
Marvell Technology (MRVL) options volume is 3X, the average daily, with 19,000 contracts traded and put volume representing 58 percent of the activity.
Foster Wheeler (FWLT) options volume is running 12X the average daily, with 9,170 contracts traded and call volume accounting for 98 percent of the activity.
Increasing options activity is also being seen in Rite Aid (RAD), Forest Oil (FST) and KLA Tencor (KLAC).
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