Implied Volatility Mover
Implied volatility in the options on Focus Media (FMCN) is easing after the Chinese media company released its earnings. Shares are up 74 cents to $24.51 in active trading of 1.95 million shares after the company reported a 71-cent per share quarterly profit, which was 12 cents better than expected. Meanwhile, 15,000 puts and 8,525 calls traded in the name. In-the-money December 24 calls are the most actives and possibly seeing some liquidating trades, as volume is 3,629 contracts, more than half the flow has been on the bid, and open interest is 9,331 contracts. Jan 22, 15, and 10 puts are the next most actives in FMCN and trading predominantly on the bid as well. Meanwhile, 30-day implied volatility in FMCN options is down 27 percent to 46.
Volume Signals
iShares Hong Kong Fund (EWH) options volume is running 328X the (22-day) average, with 448,000 contracts traded and call volume accounting for 50 percent of the volume.
Green Mountain Coffee Roasters (GMCR) options volume is 4X, the average daily, with 177,000 contracts traded and put volume representing 55 percent of the activity.
Supervalu (SVU) options volume is running 8.5X the average daily, with 63,000 contracts traded and call volume accounting for 100 percent of the activity.
Increasing options activity is also being seen in Costco (COST), Knight Trading (KCG), and Toll Brothers (TOL).
—————————————————————————————————
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.