Option Update: UBS and Credit Suisse volatility up into capital infusions

Posted Oct 16th 2008 10:54AM by Paul Foster
Filed under: Options

UBS AG (NYSE: UBS), Switzerland's biggest bank, was forced into a $59.2 billion government bailout. UBS closed at $16.65. UBS over all option implied volatility of 96 was above its 26-week average of 59 according to Track Data, suggesting larger price movement.

Credit Suisse (NYSE: CS) closed at $37.59. CS will tap about $8.8 billion in private fund to boost its capital and pursue growth opportunities. CS over all option implied volatility of 92 is above its 26-week average of 40 according to Track Data, suggesting larger price movement.

Volatility Index S&P 500 Options: VIX at 69.25; 10-day moving average is 56.69.

Volatility Index NASDAQ 100: VXN at 72.93; 10-day moving average is 61.36.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Tags: Credit Suisse, CreditSuisse, option implied volatility, OptionImpliedVolatility, UBS AG, UbsAg, Volatility Index NASDAQ 100-VXN, Volatility Index SP 500 Options-VIX, VolatilityIndexNasdaq100-vxn, VolatilityIndexSp500Options-vix