Options Update: ImClone (IMCL) & FedEx (FDX)
ImClone (IMCL)
IMCL Volatility Skewed Into Events; April Volatility At 42, May At 55
IMCL, an oncology care company, closed at $43.30.
Phase 3 FLEX results on IMCL's Erbitux in 1st-line NSCLS is expected in June 2008.
The American Society of Clinical Oncology (ASCO) Annual Meeting will be held on May 30-June 2, 2008 in Chicago.
Friedman, Billings, Ramsey says, "The stock may be strong (reaching the higher 40s) going into ASCO, where FLEX may warrant a plenary session presentation."
IMCL May option implied volatility of 56 is above its 26-week average of 47, suggesting larger price risks.
FedEx (FDX)
FDX Volatility At 34 Into Q3 Revenue Of $9.44 Billion, Up 10%
FDX reported Q4 EPS of $1.26, above consensus estimates of $1.22.
FDX Q4 revenue of $9.44 billion, up 10% compared to a year ago.
FDX sees Q3 EPS of $1.60-$1.80 compared to $1.96 a year ago.
FDX over all option implied volatility of 34 is above its 26-week average of 28, suggesting larger risk.
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About Paul Foster
Paul Foster is a former member of the Chicago Board Options Exchange with 21-years of professional experience in the capital markets, investments, trading, corporate finance, arbitrage, options and mergers & acquisitions. His writing about the options market has appeared in a wide variety of publications.
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