WEEK OF 9/25: IV REMAINS IN GOLD, MINING, PETRO SECTORS
While broad market implied volatility has basically been absent (we had one VIX pop to ~20 on 9/12, after which it has receded dramatically), it has remained in the same place as it has for the past several weeks -- in gold, mining, and oil and gas, with a smattering of high IV in individual biotech issues.
Here are the top high IV stock and ETF options as of Friday close, screened for good liquidity:
NVAX (biotech) (134.9%)
VRX (biotech) (80.0%)
GPRO ("gadgets") (80.0%)
WLL (oil and gas) (79.9%)
CHK (oil and gas) (79.4%)
CLF (mining) (73.1%)
AG (silver miner) (70.8%)
AMD (semicon) (68.9%)
TWTR (66.5%) (M&A rumor)
ESV (oil and gas) (65.2%)
GDX (gold miner ETF) (42.8%)
XME (mining ETF) (37.6%)
XOP (oil and gas ETF) (36.9%)
In comparison, SPY implied volatility currently stands at 13.1%; DIA, 13.2%; QQQ, 14.7%; and IWM, 17.7%.
Unfortunately, this makes selling premium a touch frustrating here (at least for me), since I'm already in NVAX, CHK, WLL, CLF, AG, AMD, and GDX, and there is some correlation between GDX and XME, so I don't necessarily want to pile into more individual miners -- whether they be gold, silver, or otherwise. Additionally, I think my "petro boat" is fairly full here, too.
At least for me, it's probably a bit of hand-sitting (although I could "dabble" with GPRO or VRX) until something pops to the forefront ... . In any event, can't hurt to have dry powder running into these "little elections."
Here are the top high IV stock and ETF options as of Friday close, screened for good liquidity:
NVAX (biotech) (134.9%)
VRX (biotech) (80.0%)
GPRO ("gadgets") (80.0%)
WLL (oil and gas) (79.9%)
CHK (oil and gas) (79.4%)
CLF (mining) (73.1%)
AG (silver miner) (70.8%)
AMD (semicon) (68.9%)
TWTR (66.5%) (M&A rumor)
ESV (oil and gas) (65.2%)
GDX (gold miner ETF) (42.8%)
XME (mining ETF) (37.6%)
XOP (oil and gas ETF) (36.9%)
In comparison, SPY implied volatility currently stands at 13.1%; DIA, 13.2%; QQQ, 14.7%; and IWM, 17.7%.
Unfortunately, this makes selling premium a touch frustrating here (at least for me), since I'm already in NVAX, CHK, WLL, CLF, AG, AMD, and GDX, and there is some correlation between GDX and XME, so I don't necessarily want to pile into more individual miners -- whether they be gold, silver, or otherwise. Additionally, I think my "petro boat" is fairly full here, too.
At least for me, it's probably a bit of hand-sitting (although I could "dabble" with GPRO or VRX) until something pops to the forefront ... . In any event, can't hurt to have dry powder running into these "little elections."