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Options Update: Volatility elevated for leveraged ETF Indexes

Posted Dec 16th 2008 8:41AM by Paul FosterPaul Foster RSS Feed
Filed under: Options


UltraShort S&P 500 ProShares (NYSE: SDS) is recently trading down 84 cents to $88 in pre-open trading. SDS seeks daily investment results that correspond to twice the inverse daily performance of the S&P 500. SDS January option implied volatility of 94 is above its 26-week average of 68 according to Track Data, suggesting larger price movement.

UltraShort QQQ ProShares (NYSE: QID) is recently down 1.95 to $68.35 in pre-open trading. QID seeks daily investment results that correspond to twice the inverse daily performance of the NASDAQ Index-100 Index. QID January option implied volatility of 108 is above its 26-week average of 87 according to Track Data, suggesting larger price movement.

UltraShort Financials ProShares (NYSE: SKF) is recently is recently down $2.97 to $127.89 in pre-open trading. SKF is an exchange traded fund seeking daily investment results that correspond to twice (200%) the inverse (opposite) of the daily performance of the Dow Jones U.S. Financials Index. SKF January option implied volatility of 155 is above its 26-week average of 99 according to Track Data, suggesting larger price movement.

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

Tags: option implied volatility, OptionImpliedVolatility, qid, sds, skf, UltraShort Financials ProShares, UltraShort QQQ ProShares, UltraShort SP 500 ProShares, UltrashortFinancialsProshares, UltrashortQqqProshares, UltrashortSp500Proshares

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