Daily Options Report

Well, one important thing that TV never tells you about volatility is that it can happen on the upside too. Especially in violent breaks to the upside. Volatility is about uncertainty, and when a stock hits new highs, or even just breaks above a comfortable range, you can see some options chasing.

BIDU however will have none of this options squeeze I speak of. The stock itself makes new highs every 3 minutes, but the high price tag hides the fact that it's quite the orderly run up. Options at 31 actually sit at all-time lows in volatility terms. But that statement misleads a bit. Options only go back to 2006, and it's not uncommon for options volatility to go into a semi-permanent decline over time as a tech company matures.

And as you can see from the chart of 10 Day MA down below, BIDU stock itselt trades at only a 20 volatility clip in this move. And that's actually up from 15.

So while options do not look pricy compared to either the stock action or BIDU's history, they really are in line with just about every other product we look at. With in-line defined as overpriced to the stock action itself.