www.onn.tv Steve Claussen：investors are selling premium to try t

http://www.onn.tv/whats-hot/premium-selling-sends-the-vix-tanking/

质量粒子，几率粒子，信息（主客观结合）粒子：买的大户信息占有量大；

保守场粒子数守恒，状态守恒，中国劳动或实体经济长尾，欧美信息经济长尾，长尾就是大众，人民战争，世界趋向同化

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Traders – the markets are staging an incredible snap back to kick off the week! I’m Steve Claussen, Chief Investment Strategist for OptionsHouse, and this is What’s Hot for Monday, May 10th.

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Find Trades Today The volatility in the world markets is just as extreme but to the upside today! Spain up 14%; France and the UK up 10%; the Eurostox 50 up 10% as well. The reaction in our markets is also up strong! The S&P 500 Index (SPX) is currently up 50 points with all of the market sectors sharply higher today as bulls everywhere are looking favorably on the European Union’s bailout decision, at least for now.

The CBOE SPX Volatility Index (VIX) index is taking it on the chin, down over 30% today after last week’s massive spike! Remember volatility measures the speed of the market movement, both lower and higher. Today’s massive move will increase yet again the actual historical vol, but due to the negative skew in the SPX options on which this index is derived, the VIX itself is back below 30%.

And now … let’s check out the OptionsHouse Hotlist!

Along with the VIX falling we are seeing traders sell options! Today, investors are selling premium to try to take advantage of higher volatility levels while they can! Qualcomm (NASDAQ: QCOM) is one name seeing an unusual amount of premium selling today. The out-of-the-money October 33 put has seen volume of more than 10,000 versus open interest of under 6,000. One block of 8,400 contracts traded 30 minutes into the day, going off near the bid price at $1.78. If Qualcomm is still trading above 33 when these options expire, the investor keeps the premium collected as profit. The maximum potential loss is significant if the shares decline below breakeven, and capped only by the fact the the stock cannot trade below zero!

Another name seeing similar options selling activity – this time on the call side – is Barrick Gold (NYSE: ABX). Gold the asset, along with bonds, is down sharply today with the equity market in recovery. And in ABX more than 10,000 January 60 calls have traded today, hitting the tape in two blocks of 5,000 each. The calls are currently down 22 cents despite a 39-cent increase in the stock itself – that’s volatility coming in folks! This call strike is out-of-the-money by $17 and if the shares stay below the strike price when these options expire, the investor keeps 100% of that premium received. The potential risk to a naked call sale is theoretically unlimited so not a strategy for the faint of heart.

That’s What’s Hot today! I’m Steve Claussen for OptionsHouse.