Implied Volatility Mover
Implied volatility in the options on Monster Beverage (MNST) is moving higher, as the stock comes under fire Friday. The stock is down $2.28 to $47.56 in very brisk trading of 3.6 million shares. By way of comparison, typical share volume in MNST through midday is 700,000. At the same time, 22,000 puts and 7,000 calls traded on the stock, which is 8X the daily average. Jan 47.5 puts, which are 6 cents out-of-the-money and expiring after today, are the most active. 7,500 traded. Feb 50 calls and Feb 45 puts are the next most actives and implied volatility in MNST options moved up 27 percent to 49.
Volume Signals
Morgan Stanley (MS) options volume is running 2X the (22-day) average, with 148,000 contracts traded and call volume accounting for 55 percent of the volume.
Applied Materials (AMAT) options volume is 4X, the average daily, with 60,000 contracts traded and call volume representing 80 percent of the activity.
Focus Media (FMCN) options volume is running 2.5X the average daily, with 39,000 contracts traded and call volume accounting for 95 percent of the activity.
Increasing options activity is also being seen in Capital One (COF), General Dynamics (GD), and Monster Beverage (MNST).
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