Implied Volatility Mover
Implied volatility in the options on Walter Energy (WLT) is moving higher amid active trading in the options on the coal producer. The stock gained $1.92 to $33.58 in heavy trading of 5.5 million shares after a British media report suggested the company might be a takeover target (per MarketWatch). The talk has not been confirmed. On the options front, trading in WLT is active as well. 26,000 calls and 11,000 puts so far. December 35 and 40 calls are the most actives and implied volatility in the options on Walter moved up 14.5 percent to 70.
Volume Signals
Freeport McMoran (FCX) options volume is running 2.5X the (22-day) average, with 161,000 contracts traded and call volume accounting for 62 percent of the volume.
Sandridge Energy (SD) options volume is 3X, the average daily, with 68,000 contracts traded and call volume representing 59 percent of the activity.
Nexen (NXY) options volume is running 3X the average daily, with 50,000 contracts traded and call volume accounting for 98 percent of the activity.
Increasing options activity is also being seen in MGM, Safeway (SWY), and NRG.
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