Implied Volatility Mover
Implied volatility in the options on Focus Media (FMCN) is up, as shares of the Chinese media company drop Friday. The stock is down $1.43 to $23.32 after the Reuters reported that private equity firm CDH has pulled out of a consortium that was looking to buy the company. Shares are down and options on Focus Media are seeing brisk trading as well. About 16,000 calls and 31,000 puts so far. December 22 and January 20 downside puts are seeing active trading and implied volatility in FMCN is moving up 70 percent to 80.
Volume Signals
Sandridge Energy (SD) options volume is running 4.5X the (22-day) average, with 136,000 contracts traded and call volume accounting for 78 percent of the volume.
Focus Media (FMCN) options volume is 4.5X, the average daily, with 50,000 contracts traded and put volume representing 63 percent of the activity.
TIVO options volume is running 4X the average daily, with 17,000 contracts traded and call volume accounting for 92 percent of the activity.
Increasing options activity is also being seen in Smith and Wesson (SWHC), Hovnanian (HOV), and Ingersoll Rand (IR).
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