Unusual Options Activity Update: WMT, NFLX, T, COP, GR, EP
Implied Volatility Mover
Walmart (WMT) is down 2.3 percent to $58.15 on heavy volume of 14.5 million shares and the biggest loser in the Dow Jones Industrial Average. The stock is falling for a second day after reports over the weekend suggested top company officials knew about, and overlooked, a bribery scandal. Implied volatility in WMT options is moving higher for a second day after 24,000 calls and 34,000 puts traded on the stock, which is almost 3X the daily average. Implied volatility in the options on the world's largest retailer jumped more than 30 percent to 18.5 yesterday and is up another 5.5 percent to 19.5 midday Tuesday.
Volume Signals
Netflix (NFLX) options volume is running 2.5X the (22-day) average, with 105,000 contracts traded and put volume accounting for 77 percent of the volume.
AT&T (T) options volume is 4X the average daily, with 67,000 contracts traded and call volume representing for 54 percent of the activity.
Conoco Phillips (COP) options volume is running 2X the average daily, with 54,000 contracts traded and put volume accounting for 84 percent of the activity.
Increasing options activity is also being seen in Walmart (WMT), Goodrich (GR), and El Paso (EP).
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About Joseph Cusick
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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