Vishay options activity skews heavily toward calls as implied volatility rises

Vishay Intertechnology Inc (VSH) is experiencing a surge in options activity, with calls dominating the market. As of the afternoon of October 2, 2021, 7,315 contracts were traded, with 6,211 of them being calls, accounting for approximately 85% of the volume. Puts were only 1,104 contracts. The stock price is currently $38.47, up by $12.24 from its opening price of $35.59.

The day's high was $38.94, while the 52-week range is between $11.77 and $69.47. The two-week options are short-dated bets on continued momentum, with their strikes positioned just above the $38.12 price mentioned in Bloomberg data. The three-month implied volatility has risen by 5.78 points to 70.45%, leading to a higher cost of options as traders anticipate larger price swings.

The 90/110 skew, which measures the difference in implied volatility between out-of-the-money call and put options, has fallen slightly to 0.74. This indicates a lack of demand for downside puts, as their premium is not commanding much extra value. The demand for calls seems to be driving this trend, but no specific catalyst for the jump in options activity has been identified.