Implied Volatility Mover
Implied volatility in the options on Research In Motion (RIMM) is easing, as the company launches its highly-anticipated Blackberry 10 device Wednesday. Investors digested a host of information related to the new device, including pricing plans and availability. RIM also announced that it is changing its company name to Blackberry, effective immediately. The early reaction was negative, as shares have erased morning gains and are down $1.12 to $14.54. Trading in the options is brisk. More than 300,000 contracts so far. Meanwhile, 30-day implied volatility is down 13 percent to 88, now that some of the uncertainty about BB10 has cleared.
Volume Signals
Amazon.com (AMZN) options volume is running 2X the (22-day) average, with 161,000 contracts traded and put volume accounting for 50 percent of the volume.
Chesapeake (CHK) options volume is 2.5X, the average daily, with 134,000 contracts traded and call volume representing 64 percent of the activity.
Keryx Pharmaceuticals (KERX) options volume is running 2.5X the average daily, with 36,000 contracts traded and call volume accounting for 50 percent of the activity.
Increasing options activity is also being seen in Staples (SPLS), H&R Block (HRB), and Marathon Petroleum (MPC).
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