The CBOE Volatility Index (VIX) is down 4.5% today to 42.92. The VIX was down 17% last week. Although it is down more than 50% from its October high of 89, it’s still high relative to historical averages.
Market participants continue to take advantage of this high volatility by selling options premiums.
Today, in Brink’s Home Security Holdings (CFL), market participants appear to be selling 1,000 March 12.50 Puts (CFLOV) for 35 cents. This activty is more than the total open interest (631 calls and 322 puts).
Brink’s Home Security was spun-off from The Brink’s Company (BCO) at the end of October. Given this put activity, do you feel safe with CFL?
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