Midday Unusual Options Activity Update: CIE, SIRI, STX, RENN, BAX, KEY
Implied Volatility Mover
Implied volatility in the options on Cobalt Energy (CIE) is moving up amid higher volumes in the oil and gas company. Shares are down $3 to $25.38 on heavy volume of 5.2 million shares after Financial Times published an article over the weekend related to a partnership the company has in Angola. The company was out with comments today refuting the allegations. Still, the stock is taking a hit and options volume is running 4X the daily average. 7,300 calls and 9,360 puts traded on the stock so far and levels of implied volatility moved up 10 percent to 72.
Volume Signals
Sirius Satellite (SIRI) options volume is running 3.5X the (22-day) average, with 87,000 contracts traded and call volume accounting for 53 percent of the volume.
Seagate Technology (STX) options volume is 2X the average daily, with 46,000 contracts traded and call volume representing for 77 percent of the activity.
RenRen (RENN) options volume is running 3X the average daily, with 34,000 contracts traded and call volume accounting for 72 percent of the activity.
Increasing options activity is also being seen in Baxter (BAX), Cobalt Energy (CIE), and KeyBanc (KEY).
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