Two big stories in the past 24 hours. Violence in Libya, �euphoria in Knicks-land.
One of stories has caused a bit of a rush into gold and silver and of course the SPDR Gold Trust (NYSE: GLD) and iShares Silver Trust (NYSE: SLV) ETF’s, which actually track moves in their commodity brethren quite well. And begat some interest in the weekly options. Most interesting in GLD we see speculation in the Weekly GLD Feb 139 Calls, though at 20 cents it�s a cheap dollar play that the Fear Train rolls on. SLV also seeing cheap dollar speculation in the modestly out-of-the-money Weekly SLV Feb 33 Calls. Unlike GLD though, there’s more volume in regular March options in SLV than there is in the Weeklys.
Not seeing all that much in CBOE Volatility Index (VIX) or the iPath S&P 500 VIX Short Term Futures (NYSE: VXX) options so far, but lots of early volume in VXX itself. 11 Million shares have traded in a little over an hour. Only five days have ever seen over 20 million shares of VXX change hands. The record of over 36 million that changed hands on January 28th appears safe, but we could easily surpass the 25.1 million that traded on January 19th and slide into the number two slot. I tend to read excess interest in owning volatility as contrarian (too much Fear) but opinions certainly differ on this.
Follow Adam Warner on Twitter @agwarner.
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