All was quiet in the option market Monday as traders began a new week with the expiration cycle off to a fresh start.
The CBOE Market Volatility Index (VIX), which is based on the implied volatility of the
options and is used as a gauge for fear in the market, was recently down 0.5% to $11.07. The CBOE Nasdaq Volatility Index, a measure for the implied volatility of the Nasdaq 100, was up 1.9% to 14.63.
January 30 calls traded 22,300 times, or about half of the open interest. If someone purchased the calls outright, they could be speculating on an upside move in the stock during the next two months. The shares were lately p 31 cents, or 1.2%, to $26.15.
had the April 4 calls trade 14,000 contracts and the January 2007 2.50 calls exchanged 16,000 times. Buying the April calls suggests the trader has a bullish view on the shares. Lucent's stock was unchanged at $2.84.
saw the December 60 calls trade 10,500 times as oil gained 49 cents. A trader who was long the calls could have sold them on oil's strength. The strategy for purchasing the out-of-the-money options may have been based on expectations that oil will make another run higher, driving up the share price of Exxon Mobil. The stock was up 42 cents, or 0.7%, to $58.67.
options were active with the stock trading higher. About 9,700 December 42.50 calls traded and tacked on 25 cents. The December 47.50 calls changed hands 1,400 times and gained 5 cents.
With the recent price action of Yahoo, option investors appear to be betting on continued strength in the stock. Shares of Yahoo were up 79 cents, or 1.9%, to $42.33.
also drew trading interest.
Apple's December 65 calls traded 6,200 contracts and fell 50 cents. The stock was lower by 20 cents, or 0.3%, to $64.36. Microsoft's January 27 calls were swapped 7,500 times, and the January 30 calls traded 3,800 contracts. The stock was down 5 cents to $28.02.
Questar saw its January 75 calls trade 9,800 times, which is about 1,500 contracts more than the open interest. The stock was down 26 cents, or 0.3%, to $75.99.