Options Update: ETF volatility spikes as market turmoil increases

Posted Feb 20th 2009 9:00AM by Paul Foster
Filed under: Options

United States Oil Fund (NYSE: USO) is recently down 60 cents to $23.68 in pre-open trading. USO unit net asset value reflects the performance of the spot price of West Texas intermediate light crude. USO March option implied volatility of 78 is above its 26-week average of 67, according to Track Data, suggesting larger price movement.

UltraShort Financials ProShares (NYSE: SKF) is recently up $10.48 to $196.60 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 March option implied volatility of 155 is above its 26-week average of 123, 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, SKF, UltraShort Financials ProShares, UltrashortFinancialsProshares, United States Oil Fund, UnitedStatesOilFund, USO