Implied volatility in options on London-based Barclay’s Bank (BCS) are ripping higher ahead of the weekend. Shares are falling to new 52-week lows and down 92 cents to $9.08 in the final hour. Today’s options trades include a multi-exchange sweep of 1,469 Oct 6 puts at the 60-cent asking price and a sweep of 1,343 Sep 6 puts at 20 cents when the market was 15 to 20 cents. Sep 6 puts, which are 33.9 percent OTM and expiring in one week, have now traded 10,700 contracts. October 6 and 8 puts are the next most actives. Total volume in BCS today is 49,000 puts and 8,800 calls. Heavy trading in downside puts on the bank has sent implied volatility in the options on the stock up 62 percent to 129, which has surpassed the previous high of 122 from 8/10.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.