GOOGLE announced earingis on Monday and blew the doors off. Then after breaking the AAPL strong hold on highest market cap stock it has since completely died. What is interesting is how option traders are playing the move. Take a look at the skew curve in GOOG options in Feb and March ordinary:
LivevolX for Lightspeed
Today FXE which is the best listed optoin on the EUR/USD rate, had a really nice pop in its IV. Even so, its probably too cheap, Check out the the level over the last year relative to where IV ended today.
On Friday the market rallied 50 dollars, and the VIX sold off 2 bucks...into a weekend. Then yesterday the market sold of 1 point and the VIX gave away a little more. Today, the SPX sold of 35 bucks, basically the lows of Friday, and the VIX was up about 2.00 even. What gives? Well I think the answer lies in the futures. While the VIX cash has remained, save .02%, above 20, but managed to fall back into contango relative to the VIX futures and VXV. The VIX futrures have been trading in a backward state out to may the entire rally. Today's did not help.