Implied Volatility Mover
Implied volatility in the options on Vivus Pharmaceuticals (VVUS) is moving up ahead of the company’s quarterly profit report. The biotech is scheduled to release results Tuesday morning. The stock is up 59 cents to $15.02 in active trading of 3 million shares ahead of the news. Options action is heating up as well. 7,245 calls and 2,450 puts in VVUS so far. Eight of the ten most actives are call options, being led by the Nov 15s, which are at-the-money and expiring in 11 days. 1,950 contracts traded. Meanwhile, implied volatility in VVUS options is moving up 23 percent to 91.5 ahead of the results.
Volume Signals
Groupon (GRPN) options volume is running 3X the (22-day) average, with 69,000 contracts traded and put volume accounting for 80 percent of the volume.
HESS (HES) options volume is 2X, the average daily, with 28,000 contracts traded and call volume representing 85 percent of the activity.
CVS options volume is running 2X the average daily, with 18,000 contracts traded and call volume accounting for 54 percent of the activity.
Increasing options activity is also being seen in Hovnanian (HOV), Ctrip.com (CTRP), and Melco Crown Entertainment (MPEL).
——————————————————————————————–
Disclaimers
This article is provided for informational purposes only. No statement in this article should be construed as a recommendation to buy or sell a security or to provide investment advice. The content provided has been obtained from sources deemed reliable but is not guaranteed as to accuracy and completeness. optionsXpress makes every effort to provide timely information to its recipients but cannot guarantee specific delivery 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 the potential loss is unlimited. Multi-leg option strategies are subject to multiple commissions. Profits may be eroded by the commission expended to open and close the positions and other risks apply.