Option Sellers Push Vols Lower…
Volatilities all around the floor are
under siege. Option premium selling has pushed the VIX to 24%, the Nasdaq to a
new low reading of just 60%, and even the highflying SOX index to a reading of
just 72%. What that means is the world expects little in the way of surprises
over the next few weeks and our data would support that opinion. We would
always caution that an overconfident market (which we believe is reflected by
VIX levels under 20%, or NDX readings under 50%) is
usually a harbinger of market volatility moving higher. However, with the
earnings season winding up and little in the way of market-moving economic
factors on the horizon, we see a holding pattern a distinct possibility
through February expiration next week.
|
Symbol
|
|
|
Volatility
|
|
BHH
|
B2B
|
92.77
|
|
|
HHH
|
Internet
|
73.74
|
|
|
SOX
|
Semiconductor
|
72.55
|
|
|
BDH
|
Broadband
|
66.73
|
|
|
SMH
|
Semiconductor
|
66.02
|
|
|
QQQ
|
NASDAQ-100
|
62.83
|
|
|
BBH
|
Biotech
|
61.88
|
|
|
NDX
|
NASDAQ-100
|
60.71
|
|
|
MNX
|
Mini
|
59.68
|
|
|
OSX
|
Oil
|
52.89
|
|
|
BKX
|
Banking
|
33.09
|
|
|
RUT
|
Russell
|
29.28
|
|
|
OEX
|
Standard
|
24.36
|
|
|
SPX
|
Standard
|
22.01
|
|
|
DJX
|
Dow
|
20.41
|
|
| (1010WallStreet.com has licensed the use of Hamzei Analytics LLC proprietary options analytics) |
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Yesterday, three insiders from American Micro Circuts
Corp.
(
AMCC |
Quote |
Chart |
News |
PowerRating) filed form 144 with the SEC, informing the
Commission of their intention to sell restricted shares in the company. The
total shares being sold came to about 150,000, so that’s hardly a reason to
panic the stock. However, today we saw two 7,000-lot sales of the FEB 55 puts hit
the CBOE tape at 10:02 CST. 14,000 puts sold for 6 1/8 is enough to get your
attention.
Now that kind of volume, coming as it did on the sell side, does not indicate
an institutional interest in selling out of AMCC, but rather someone of
considerable means drawing a line in the sand.