Implied Volatility Mover and Volume Signals for Friday, January 11, 2013
Implied Volatility Mover
Implied volatility in the options on Georgia Gulf (GGC) is moving higher along with the underlying stock price today. Shares of the Atlanta, GA chemicals company are up $1.15 to $48.96 and new 52-week highs in active trading after shareholders approved the issuance of stock to complete its planned acquisition of PPG’s commodity chemicals business. Options volume on GGC is running 5X the daily average, with 12,000 calls and 9,910 puts traded in the name. February 60 puts and calls are the most actives in the name and implied volatility is up 22 percent to 56.
Volume Signals
BP options volume is running 2X the (22-day) average, with 65,000 contracts traded and call volume accounting for 70 percent of the volume.
Georgia Gulf (GGC) options volume is 4X, the average daily, with 20,000 contracts traded and call volume representing 56 percent of the activity.
Forest Labs (FRX) options volume is running 13.5X the average daily, with 17,000 contracts traded and call volume accounting for 98 percent of the activity.
Increasing options activity is also being seen in Safeway (SWY), NRG, and Electronic Arts (EA).
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