Implied Volatility Mover
Implied volatility in options on Nationstar Mortgage (NSM) moved lower after the company reported earnings Tuesday morning. The stock is up $1.85 to $39.59 on heavy volume of 2.2 million shares in reaction to the results. Meanwhile, options volume in NSM is running 5X the daily average. About 18,000 calls and 5,000 puts so far. May 40 calls, which saw opening activity yesterday ahead of the news, are again the most active in NSM. 8,670 contracts traded. May 25 and 30 calls are the next most actives and 30-day implied volatility in NSM is easing 21.5 percent to 40, now that the earnings event risk has passed.
Volume Signals
Baxter International (BAX) options volume is running 3X the (22-day) average, with 39,000 contracts traded and call volume accounting for 55 percent of the volume.
Dollar General (DG) options volume is 9X, the average daily, with 23,000 contracts traded and call option volume representing 96 percent of the activity.
Dendreon (ZNGA) options volume is running 2X the average daily, with 62,000 contracts traded and call volume accounting 65 percent of the activity.
Increasing options activity is also being seen in Sodastream (SODA), NRG, and DirectTV (DTV).
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