Implied Volatility Mover
Implied volatility in the options on Dean Foods (DF) is higher today. The stock is down $2.51 to $16.28 in active trading of 14 million shares after the company’s Dairy unit, Whitewave Foods (WWAV), saw a lackluster first day of trading. WWAV is now falling below its IPO price of $17 per share. DF, meanwhile, is trading lower after two days of big gains on hopes for a strong IPO of Whitewave. Options volume on the stock is 3X the daily average. About 10,000 calls and 7,000 puts in Dean Foods so far. November 18 and 19 calls are the most actives and implied volatility is up 6 percent to 60.5.
Volume Signals
Amazon (AMZN) options volume is running 2X the (22-day) average, with 139,000 contracts traded and put volume accounting for 58 percent of the volume.
Verizon (VZ) options volume is 67X, the average daily, with 49,000 contracts traded and call volume representing for 85 percent of the activity.
Decker Outdoor (DECK) options volume is running 2.5X the average daily, with 40,000 contracts traded and put volume accounting for 51 percent of the activity.
Increasing options activity is also being seen in Nexen (NXY), Activision Blizzard (ATVI), and Pandora (P).
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