Implied Volatility Mover
Implied volatility in options on Nam Tai Electronics (NTE) is easing after the company reported earnings. The stock has come under fire, falling $3.97 to $7.36 on surging volume of 5 million shares. Meanwhile, 7,640 calls and 4,170 puts have traded on the Chinese consumer electronics maker. June 15 calls, which are now very deep out-of-the-money, are the most actives. Some investors are possibly liquidating positions. 5,353 contracts traded against 6,476 in open interest. Meanwhile, 30-day implied volatility in NTE is falling 22 percent to 71.5 now that the earnings event risk has passed.
Volume Signals
Huntsman (HUN) options volume is running 8X the (22-day) average, with 57,000 contracts traded and call volume accounting for 100 percent of the volume.
SINA options volume is 4X, the average daily, with 48,000 contracts traded and call option volume representing 72 percent of the activity.
McGraw Hills (MHP) options volume is running 5X the average daily, with 13,000 contracts traded and call volume accounting 91 percent of the activity.
Increasing options activity is also being seen in Cavium Networks (CAVM), Tennet Healthcare (THC), and Actavis (ACT).
Do you want to learn more about unusual options trading activity? Then the Unusual Options Activity Forum is for you:
When: Wednesday, May 15
Time:? 2:00 p.m.
Where: The Chicago Board Options Exchange, 400 South LaSalle Street, Chicago, IL 60605
Price: $99
What Will You Learn?
Attendees of this one-of-a-kind event will learn:
- The specific tools, strategies, and techniques used by options experts to identify unusual options trading activity
- How to filter out meaningful trades from the sea of noise in the options market
- How to successfully incorporate unusual activity information into your options trading
- How to avoid the costly mistakes made by many traders when analyzing unusual options activity.
What Will You Get?
- A Rare, Guided Tour of the Historic Chicago Board Options Exchange Trading Floor ? Including the Apple, Google, SPX & VIX Trading Pits (street price: unavailable to the public)
- One Free Month of Option Vision ? ?A unique 3-D charting platform designed to hunt down unusual options activity (street price: $99)
- One Free Month of OptionAlert ? The leading option flow monitor and unusual activity analysis tool (street price: $150)
- One Free Month of Livevol Pro ? The premiere analytics platform for professional options traders (street price: $199)
- Free Copy of The Options Traders? Hedge Fund (street price: $40)
- One Free Month of Option Pit Live ? Option Pit Live is designed to feed option traders the best actionable options trading content on the web. (street price: $125)
- One Free Month of Market Taker Group Coaching ? Let the pros at Market Taker Mentoring improve your options trading. Receive professional daily group mentoring sessions for one month ? including 20 trade ideas each session. (street price: $332)
———————————————————————————
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.