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Options Update: UltraShort ProShares volatility decreases

Posted Dec 31st 2008 10:15AM by Paul FosterPaul Foster RSS Feed
Filed under: Options

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UltraShort S&P 500 ProShares (NYSE: SDS) closed at $72.71 Tuesday. SDS seeks daily investment results that correspond to twice the inverse daily performance of the S&P 500. SDS overall option implied volatility of 74 is near its 26-week average of 71, according to Track Data, suggesting non-directional price movement.

UltraShort QQQ ProShares (NYSE: QID) closed at $58.37 Tuesday. QID seeks daily investment results that correspond to twice the inverse daily performance of the NASDAQ-100 index. QID overall volatility of 77 is below its 26-week average of 84 according to Track Data, suggesting decreasing price movement.

UltraShort Financials ProShares (NYSE: SKF) closed at $111.16 Tuesday. 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 110 is near its 26-week average of 104, according to Track Data, suggesting non-directional price movement.

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

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

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