Unusual Options Activity Update: HPQ, NTAP, SNDK, HL, SLE, WLP
Implied Volatility Mover
Implied volatility in the options on Hewlett Packard (HPQ) is down sharply today. Shares are up 3.5 percent to $21.82 and easily the best gainers in the Dow Jones Industrial Average after the company reported earnings after the closing bell Wednesday. The stock is up on high volume of almost 40 million shares. November 24 calls, 30 calls, and 17 puts are the most actives, as one investor apparently liquidated a massive bullish three-way spread in the November contracts. Weekly 22 puts and 23 calls, which expire after tomorrow, are the next most actives and implied volatility in the options is down 37 percent to 32.
Volume Signals
Hewlett Packard (HPQ) options volume is running 3.5X the (22-day) average, with 162,000 contracts traded and call volume accounting for 57 percent of the volume.
NetApp (NTAP) options volume is 3X the average daily, with 83,000 contracts traded and call volume representing for 55 percent of the activity.
Sandisk (SNDK) options volume is running 2.5X the average daily, with 46,000 contracts traded and put volume accounting for 53 percent of the activity.
Increasing options activity is also being seen in Helca Mining (HL), Sara Lee (SLE), and WellPoint (WLP).
------------------------------------------------------------------------------
Disclaimers
This article is provided for informational purposes only. No statementin this article should be construed as a recommendation to buy or sell asecurity or to provide investment advice. The content provided has beenobtained from sources deemed reliable but is not guaranteed as toaccuracy and completeness. optionsXpress makes every effort to providetimely information to its recipients but cannot guarantee specificdelivery times due to factors beyond our control.
Derivatives involve substantial risk and are not appropriate for all investors. Please read the "Disclosure Statement for Futures and Options" prior to investing in futures or options.
For investments using a straddle or strangle options strategy thepotential loss is unlimited. Multi-leg option strategies are subject tomultiple commissions. Profits may be eroded by the commission expendedto open and close the positions and other risks apply.
"
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.
View Joseph Cusick's post archive >
