The options market was quiet Tuesday ahead of the
Federal Open Market Committee
The CBOE Market Volatility Index, or VIX, technically a measure of implied volatility based on the
options but a commonly used gauge of fear in the market, was recently down 1% to 12.02. Meanwhile, the CBOE Nasdaq Volatility Index, which measures the implied volatility of the Nasdaq 100, was down 3% to 14.24.
As oil gave back some of its recent gains, the
Energy Select Sector
fund saw put buyers. The December 50 puts have traded 17,500 times. The ETF was down 55 cents, or 1.02%, to $53.11.
had heavy call buying after the company was upgraded by Goldman Sachs from in-line to outperform. The October 45 calls have traded 4,700 times. The January 2006 45 calls have traded more than 16,500 contracts. The stock was up $1.41, or 3.3%, to $44.12.
had a buyer of the October 22.5 calls 15,400 times. The calls were higher by 25 cents. Disney stock was up 25 cents, or 1.05%, to $24.15.
saw the November 25/27.5 strangle trade 10,000 times. A strangle is when someone buys the downside puts and upside calls simultaneously. The buyer of this type of trade is hoping for a volatile move in the stock. The stock was up 11 cents, or 0.42%, to $26.11.
had call buyers and put sellers after Deutsche Bank initiated coverage on the stock with a buy and set a $60 price target. The October 55 and 57.5 calls have traded a total of 15,000 contracts. The January 2006 40 straddle traded 9,000 times. This is when someone buys the 40 calls and 40 puts simultaneously hoping a large price move in either direction of the stock. Apple was up 87 cents, or 1.65%, to $53.51.
Among financial stocks,
had a buyer of the October 35 calls 6,700 times. The stock was up 33 cents, or 0.95%, to $34.92.
To view Mike Marino's video take on today's option action, click here.