Midday Unusual Options Activity Update: MDRX, XLB, MRVL, SUN, MRK, MDRX, BKS
Implied Volatility Mover
Implied volatility in the options on Allscripts (MDRX) is easing off of the high levels seen Friday. Shares took a hit late last week after the company lowered guidance, announced that some Board members are stepping down, and a CFO resigned. Active trading continues Monday. MDRX has rebounded and is up 63 cents to $10.93 on volume of 13 million shares. Options volume is 6.6X the daily average. 20,000 calls and 1,720 puts traded so far. September 12 calls are the most actives. 10,160 changed hands. Some investors might be selling the upside (out-of-the-money) calls, as 57 percent of the volume traded on the bid and levels of implied volatility in MDRX options is down 5 percent to 57 on the day.
SPDR Basic Materials Fund (XLB) options volume is running 3.5X the (22-day) average, with 94,000 contracts traded and put volume accounting for 100 percent of the volume.
Marvel Technology (MRVL) options volume is 6X the average daily, with 42,000 contracts traded and call volume representing for 60 percent of the activity.
Sunoco (SUN) options volume is running 12X the average daily, with 34,000 contracts traded and call volume accounting for 85 percent of the activity.
Increasing options activity is also being seen in Merck (MRK), Allscripts (MDRX), and Barnes and Noble (BKS).
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