Stocks With Unusually High Implied Volatility

Description:

From Barron's 3-12-2007:

"Some of the most compelling action in the options market has occurred among stocks whose market-capitalizations exceed $20 billion. The implied volatility of these big-caps increased more than the benchmark indexes, but has attracted much less attention. Long-term stock investors may want to take advantage of this by selling puts against their positions

Current market conditions introduce a few important variables for put sellers to consider. Sell puts on mega-cap stocks with high implied volatility if you think stocks were unfairly punished in the general market rout. Other reasons to sell those puts are if you believe the stock market sell-off is largely over, or if next wave of a sell-off will hit stocks with poor fundamentals."

Stocks with unusually high three-month implied volatility, relative to their average levels include:

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