Blogging Options: Mid-Day Update

Moody’s placed the ratings of Bank of America (BAC), Citigroup (C), and Wells Fargo (WFC) on review for possible downgrade. Shares are trending lower on flat to low I.V.

 
Citigroup overall option implied volatility of 28 is below its six-month average of 33.
Bank of America overall option implied volatility of 32 is near its six-month average of 34.
Wells Fargo overall option implied volatility of 30 is near its six-month average of 29.

Corinthian Colleges (COCO) and other for-profit education companies are rallying after the Department of Education released its new proposed gainful employment rule. COCO June put option implied volatility is at 73, July and August is at 63; compared to its 26-week average of 62, suggesting larger near term price movement.