Implied Volatility Mover
Implied volatility in the options on Weyerhaeuser (WY) is ticking higher amid a second day of options trading on the paper company. Yesterday’s activity created 8,000 contracts of new open interest in December 27 puts on WY. At 8,899 contracts, the Dec 27 put is the second largest position in the name, behind the Jan 20 puts. Shares are down 65 cents to $26.51 Wednesday and options volume through midday is 2,750 puts and 855 calls. December 27 puts are again the most actives after 1,440 traded. December 26 puts are the next most actives in WY. 710 contracts changed hands. It’s not clear what is motivating the activity, as there are obvious headlines on the ticker so far this week, but 30-day implied volatility in the options on the stock is 11 percent to 24.5 Wednesday.
Volume Signals
Freeport McMoran (FCX) options volume is running 5.5X the (22-day) average, with 250,000 contracts traded and call volume accounting for 71 percent of the volume.
McMoran Exploration (MMR) options volume is 5X, the average daily, with 164,000 contracts traded and call volume representing 66 percent of the activity.
Anadarko Petroleum (APC) options volume is running 5.5X the average daily, with 103,000 contracts traded and call volume accounting for 90 percent of the activity.
Increasing options activity is also being seen in Dollar General (DG), Pitney Bowe’s (PBI), and Western Digital (WDC).
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