Implied Volatility Mover
Implied volatility in the options on Diamond Foods (DMDN) is up sharply along with the stock price Monday. DMND is up $1.67 to $16.08 on surging volume of 1.55 million shares after a filing released Friday morning showed Blackrock with a 7.85 percent stake in the food company. 8,630 calls and 850 puts traded in the name, a ratio of more than ten-to-one. February 14 calls are the most actives and 30-day implied volatility in DMDN options jumped nearly 25 percent to 51.
Volume Signals
SPDR Technology Fund (XLK) options volume is running 2X the (22-day) average, with 53,000 contracts traded and call volume accounting for 99 percent of the volume.
AOL options volume is 8X, the average daily, with 31,000 contracts traded and call volume representing 54 percent of the activity.
MGIC (MTG) options volume is running 4X the average daily, with 14,000 contracts traded and put volume accounting for 95 percent of the activity.
Increasing options activity is also being seen in Kroger (KR), Diamond Foods (DMND), and Agnico Eagle Mines (AEM).
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