Implied Volatility Mover
Implied volatility in the options on Nexen (NXY) is elevated today after Reuters reported that Cnooc’s deal to buy the company might be in jeopardy after the Canadian government block Petronas’ bid for Progress Energy. NXY is down $1.28 to $24.12 in active trading of 33 million shares. Meanwhile, 31,000 calls and 8,000 puts traded on the Canadian energy company. Implied volatility is up 30 percent to 50, from 38, amid the uncertainty.
Volume Signals
Peabody Energy (BTU) options volume is running 4X the (22-day) average, with 86,000 contracts traded and call volume accounting for 74 percent of the volume.
Supervalu (SVU) options volume is 8X, the average daily, with 42,000 contracts traded and call volume representing for 57 percent of the activity.
Nexen (NXY) options volume is running 10.5X the average daily, with 39,000 contracts traded and call volume accounting for 79 percent of the activity.
Increasing options activity is also being seen in Overseas Shipholding (OSG), Aetna (AET) and Juniper Networks (JNPR).
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