Midday Unusual Options Activity Update: CRUS, MSFT, SNDK, HGSI, AMD, RVBD, SWKS
Implied Volatility Mover
Implied volatility in the options on Cirrus Logic (CRUS) is higher for a second day. As noted in yesterdayís closing report, put options on the chipmaker were busy Thursday and levels of implied volatility in CRUS options increased by 18 percent to 58.5. The activity continues today, with another 8,320 puts and 3,130 calls traded on the stock. May 21 puts are the most actives and levels of implied volatility are up another 10.5 percent to 64.5. Some investors might be buying downside puts in CRUS to hedge the stock heading into earnings next week. Shares are down over the past two days, but up more than 40 percent year-to-date.
Volume Signals
Microsft (MSFT) options volume is running 3X the (22-day) average, with 338,000 contracts traded and call volume accounting for 76 percent of the volume.
Sandisk (SNDK) options volume is 2.5X the average daily, with 73,000 contracts traded and put volume representing for 55 percent of the activity.
Human Genome Sciences (HGSI) options volume is running 4X the average daily, with 44,000 contracts traded and call volume accounting for 73 percent of the activity.
Increasing options activity is also being seen in AMD, Riverbed Technology (RVBD), and Skyworks Solutions (SWKS).
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Joseph Cusick currently serves as the Senior Vice President of Education and a Senior Market Analyst for optionsXpress. Mr. Cusick seeks out common sense and technologically scalable educational pathways for self-directed investors of all experience levels. He is largely responsible for ramping up delivery of online and offline seminars to customers and potential clients worldwide. Prior to serving in his current role, Mr. Cusick immersed himself in the broker side of optionsXpress by managing his own book of business. Prior to joining optionsXpress, Mr. Cusick served as a market maker and portfolio manager at the Chicago Board of Options Exchange. Joseph is a graduate of Marquette University and holds his Series 4, 7 and 63 registrations with FINRA.
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