Midday Unusual Options Activity Update: MDRX, AMZN, SBUX, DECK, EXPE, ITMN, PG

Posted April 27th, 2012 by Joseph Cusick in Unusual Activity

Implied Volatility Mover
Implied volatility in the options on Allscripts (MDRX) moved up sharply Friday morning. Shares are off $6.39 to $9.62 on extremely heavy volume of 58 million shares after the company lowered guidance, announced that some Board members are stepping down, and a resignation of a CFO. The news sent shares down and 41,000 contracts traded on the stock. Typical volume is about 560 contracts through midday. Meanwhile, levels of implied volatility jumped 80 percent to 75.

Volume Signals
Amazon.com (AMZN) options volume is running 2.5X the (22-day) average, with 249,000 contracts traded and call volume accounting for 74 percent of the volume.

Starbuck's (SBUX) options volume is 8X the average daily, with 70,000 contracts traded and call volume representing for 54 percent of the activity.

Deckers Outdoor Products (DECK) options volume is running 8X the average daily, with 43,000 contracts traded and call volume accounting for 50 percent of the activity.

Increasing options activity is also being seen in Expedia (EXPE), Intermune (ITMN), and P&G (PG).

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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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