Implied Volatility Mover
Implied volatility in the options on Diamond Foods (DMND) is moving higher ahead of the company’s quarterly earnings report. The food company said it would release up to two years of re-stated financial statements after the close of trading Wednesday. Diamond Foods has not released results for several quarters due to problems with its accounting. Shares are up $1.87 to $19.27 in active trading of 760,000 shares ahead of the news. Options volume is running 7X the daily average. 4,775 calls and 3,900 puts so far. Meanwhile, 30-day implied volatility in DMND options jumped 73 percent and is elevated at 117.
Volume Signals
MetroPCS (PCS) options volume is running 2.5X the (22-day) average, with 101,000 contracts traded and put volume accounting for 92 percent of the volume.
SPDR Oil and Production ETF (XOP) options volume is 2.5X, the average daily, with 49,000 contracts traded and put volume representing 92 percent of the activity.
Weatherford (WFT) options volume is running 2.5X the average daily, with 37,000 contracts traded and call volume accounting for 65 percent of the activity.
Increasing options activity is also being seen in AK Steel (AKS), Suncor (SU), and Norfolk Southern (NSC).
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