I've included the VIX summary as well - note IV30™ in the VIX (i.e. the vol of the vol) is up 36.7 points or 28.5%.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhk7-dddcKhYZGjTOywcvf9Z-3NX_fYgcwtEqJ0y6aSbTwhdcj9lXoVtzxe4Ewr6NXFDhk41noZ10mRXOtx5jx3fs9vcEsFzzfRVaDsyoJ4TX57ypeL-aavmFzpIGBokzTV3w-0PxFDv-1g/s400/vrsn_summary.gif)
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg5F30PC9XAqbyYIDUfzl0kw59QxcSEIh9R9HKpzf4GSwWdrGUTae7SMZ7pcPwHF5GOHHmJEEFDcVbMITSG2XOb82Rtc21vhHQlVXONXNdYn4d16hzn0Mtexlo_ykNGGg76Rb7uy-_2w4ie/s400/vix_summary_3.gif)
The company has traded over 30,000 options in the first hour on total daily average option volume of just 5,689. The largest trade has been a vol sale (strangle) in Sep. The Stats Tab and Day's biggest trades snapshots are included (click either image to enlarge).
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg-LVlLGOusPkFy3mcmmkTEhzD4WgS93l3ws_AsK2H92juCtmat9WGG7UK61-zNo2LhBvKdLnGQcGHDTJmcotBJ8KmddDJEVAKlzKL5UOJj_XAa9jBk2PbjpU1kMpLxfwVcqknlDrr5NLb4/s400/vrsn_stats.gif)
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjR9ajOA2SSkKFp93jpWjNZ50tt-4-9rdwJjBdV3mBr-UdaOfZxxSGae6wzWUDDCEmdFpog1UUVnFdKm1DqSpPUPHB1zterUSXANv2q24QQ2ckUGykNYuystfrltrBxdC7kt-BBmeeJS9FY/s400/vrsn_trades.gif)
The Options Tab (click to enlarge) illustrates that both the puts and the calls are mostly opening (compare OI to trade size).
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjqb-lE6mFroE0dK3XlwIIec68XYDSpZ8TwaIH3nvhE-KXoeCOVOketfXx2bw6WbjBvdjjDZpQqFXLah0ZhKvovxkz3kxBp6FVveBhwlAqqRArg4cxqwoLjhanY0L2YX7Iz8Lf51izWE0LJ/s400/vrsn_options.gif)
The strangle sale was @ $3.85 ($2.85 in the puts and $1.00 in the calls) for a total credit of 13,000 x 100 x $3.85 = $5,005,000. Max gain at expo. is if the stock is in between the two strikes [28,31]. Breakeven is $24.15 and $34.85.
The Skew Tab snap (click to enlarge) illustrates the vols that were sold in comparison to the rest of the chain.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiZBpaVK-UjuCw57g2YCbrl2GspnFuDdXoClXYoteQeWI36tdSZ8xuYw8O3BH06dztzIaYyXvk_VDXtWUDzX9Un4riX9HH4pVgnOG0lW7oy00i1D3JWfM431U0DSXoet6ebdH_s5da3uzUF/s400/vrsn_skew_5-20-2010.gif)
More importantly however, you can see the vol (IV30™) in VRSN recently. The chart (below) looks almost identical in shape to a huge number of other stocks.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi1oUFFwpaNORbCqzk5tJKJMdujhQ4ZeCJ8tDeQT7ibIc8LKoCZR7YuM6ZxQRDEwNZUeyNYteCZUrxT6RudUBHU3WLIN2BCE4fRmNaqcAFFjwKqNJdBhllAjj_lZ_S-3ZvigNlafrbi-MDM/s400/vrsn_vol_chart.gif)
Note the elevated (spiking really) vol. This trade can be a winner well ahead of Sep expo. if vol dips in the summer months (particularly if it dips in August so the strangle wins to decay and vega).
This is a great example of not getting paralyzed by the market. It's going down, vol is spiking. The VIX is acting like a bio-tech in terms of vol (see above). If you're a vol seller, then be a seller. If you think vol is going higher, then bet that way. Note that as high as IV30™ is for the VIX, it's actual (realized) vol is in fact WAY higher (it's tripled in a month).
Naked strangles are more pro/institution type trades (like the one above) - but you can sell or buy vol in spreads to manage max loss outcomes. The same for deltas.
This is trade analysis, not a recommendation.
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