With stock rallying a second-straight day, options volatility took another turn
lower. Indeed, equities are now above the levels they fell to within minutes of
Monday's opening, a move induced in part by the Standard & Poor's downgrade
of U.S. debt. The CBOE Market Volatility Index, the VIX, was recently off more
than 6% to a still-elevated level of 36.48. On Monday, the VIX crossed 47 in the
wake of the huge selloff in stocks. It had begun the month at around 25. The
CBOE put/call ratio was recently at 1.15. Here are some notable options
developments on Friday: ARM Holdings (NASDAQ: ARMH ): The company's Aug 23
puts are seeing interest after a BofA/Merrill downgrade of the stock earlier
Friday. Implied volatility of the puts have been pushed up about 8 points to
90%. The stock was recently up 1.8% to $25.53. Forest Oil (NYSE: FST ): The Sep
17 puts are active, pushing implied volatility down about 4 points to about 69%.
The stock was recently off a few pennies to $19.46. It's down more than 23%
since the company reported earnings on Aug. 2. Suncor Energy (NYSE: SU ): The
Jan 12 42 calls are catching interest, pushing implied volatility down about 2
points to 39%. The stock was recently off 0.4% to $32.41.
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