Implied Volatility Mover
Implied volatility in the options on Dendreon (DNDN) is moving higher amid increasing levels of call activity on the biotech today. The stock is up 28 cents to $6.45 in active trading of 4.25 million shares on positive analyst commentary. Call volume is trouncing put activity, as volume so far includes 12,000 calls and 750 puts. Weekly 6.5 calls, expiring after tomorrow, are the most active. 4,115 traded. Meanwhile, 30-day ATM implied volatility is up 20 percent to 80.5.
Volume Signals
Netflix (NFLX) options volume is running 3X the (22-day) average, with 131,000 contracts traded and call volume accounting for 51 percent of the volume.
SPDR Technology ETF (XLK) options volume is 3X, the average daily, with 73,000 contracts traded and call volume representing 95 percent of the activity.
Vodafone (VOD) options volume is running 4X the average daily, with 41,000 contracts traded and call volume accounting for 55 percent of the activity.
Increasing options activity is also being seen in Newscorp (NWSA), Paychex (PAYX), and Manitowac (MTW).
——————————————————————————————-
Disclaimers
This article is provided for informational purposes only. No statement in this article should be construed as a recommendation to buy or sell a security or to provide investment advice. The content provided has been obtained from sources deemed reliable but is not guaranteed as to accuracy and completeness. optionsXpress makes every effort to provide timely information to its recipients but cannot guarantee specific delivery times due to factors beyond our control.
Derivatives involve substantial risk and are not appropriate for all investors. Please read the “Disclosure Statement for Futures and Options” prior to investing in futures or options.
For investments using a straddle or strangle options strategy the potential loss is unlimited. Multi-leg option strategies are subject to multiple commissions. Profits may be eroded by the commission expended to open and close the positions and other risks apply.