Midday Unusual Options Activity Update: HRB, ZNGA, UPS, CRUS, WDC, WPI, GPS
Implied Volatility Mover
Implied volatility in H&R Block (HRB) is up sharply today after the tax preparation company announced layoffs and office closings, while also lowering its 2012 earnings guidance. The stock is down $1.80 to $14.94 on heavy volume of 9.2 million shares. Meanwhile, options volume is running 8.5X the daily average. 14,000 puts and 2,225 calls traded on the stock and levels of implied volatility in HRB options increased 44.5 percent to 36.
Volume Signals
Zynga (ZNGA) options volume is running 2X the (22-day) average, with 48,000 contracts traded and call volume accounting for 74 percent of the volume.
UPS options volume is 2.5X the average daily, with 35,000 contracts traded and call volume representing for 80 percent of the activity.
Cirrus Logic (CRUS) options volume is running 6X the average daily, with 34,000 contracts traded and call volume accounting for 53 percent of the activity.
Increasing options activity is also being seen in Western Digital (WDC), Watson Pharmaceuticals (WPI), and Gap Stores (GPS).
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