Options implied volatility on Hewlett-Packard earlier rose to 56.05%, but currently stands 20.05% higher on the session at 53.47% as of 1:40 pm ET.
For those doubting Thomases who think the market is much too efficient to be affected by a few banks and funds selling options, it is worth bearing in mind that in the early 1990s one man single-handedly drove the implied volatility on Japan's Nikkei-225 average from 22% to 11% by dint of selling 34, 000 options on it.
Options implied volatility on the Beijing-based company increased 11.2% to 47.03% as of 1:00pm in New York, with overall options volume on the stock exceeding 99, 930 contracts.
They have been willing to pay a higher price (as measured by implied volatility) for extreme out-of-the-money options than for contracts that insure against smaller market declines.
Implied volatility on Target options also surged--options traders anticipating a 31.5% deviation in share prices, a level head and shoulders above Target's actual historical share-price variability of just 21.2%.
Options implied volatility on Genworth is up slightly in early-afternoon trade, standing 4.1% higher on the session at 33.33% as of 12:20pm.
Options implied volatility on RIMM is down 18.9% post-earnings to stand at 52.20% as of 1:25pm.
To find the prices of these hypothetical options, you need an implied volatility, which I derived by finding implieds on near-term options which were about 5% in-the-money.
Implied volatility in the options continues to run high, even post-Fed.
Given the fact that Alcoa is having its recent bid for Canadian aluminum rival Alcan (nyse: AL - news - people ) reviewed by regulators, implied volatility has remained high at around 51%.
Each year, I analyze the primary drivers of asset class long-term returns including risk as measured by implied volatility, expected earnings growth based on GDP estimates and foreign business expansion, market implied inflation based on the spread between long-term Treasury Bonds and TIPS, and current cash payouts from interest and dividends on bond and stock indexes.
With implied volatility on this share through the roof at 147%, the massive options volume--55, 000 lots traded on Friday--is no big surprise.
Options implied volatility on the stock rose 14.7% to 39.7% in early-afternoon trade.
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The ever-inventive financial sector has found ways to trade the difference between realised and implied volatility.
Implied volatility on the stock shot up 136.39% to 194.42% in early-afternoon trade on fears the U.S. may be heading into recession and concern AMR Corp. may need to eventually consider bankruptcy protection.
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Options implied volatility on CAT is up 10.2% to stand at 30.20% in early-afternoon trade.
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Options implied volatility on Guess, Inc. rose 7.0% to 35.92% in early-afternoon trade.
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Options implied volatility on Rockwell Collins is down 16.6% to stand at 17.9% in early-afternoon trade.
Yet in an environment where option implied volatility is literally trading at a premium, the worth of the option has increased by more than six-fold in the space of three weeks.
Biogen Idec Inc. ( BIIB - news - people ), experienced sharp upward shifts in share price as well as in options implied volatility following the news.
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