Implied Volatility Mover
Starbucks (SBUX) is down and implied volatility in the options on stock is moving higher amid relatively active trading Friday. Shares lost 48 cents to $51.32 after a 12.9 percent month-to-date advance since 10/31. Most of the gains were recorded on the second day of November, when shares jumped 9 percent in the wake of its earnings report. Investors in the options market are now jockeying for position in anticipation of Starbucks? next move. About 14,000 calls and 16,000 puts traded on the ticker. Typical volume through midday (puts and calls) is about 15,000. December 50 puts are the most actives, with more than 8,300 traded. Weekly (12/7) 52.5 calls and 50 puts are busy as well and implied volatility in SBUX options is up 14 percent to 27.
Unusual Volume
Verisign (VRSN) options volume is running 4.5X the (22-day) average, with 76,000 contracts traded and put volume accounting for 55 percent of the volume.
Zynga (ZNGA) options volume is 2.5X, the average daily, with 47,000 contracts traded and call volume representing 75 percent of the activity.
?lan (ELN) options volume is running 30X the average daily, with 45,000 contracts traded and put volume accounting for 94 percent of the activity.
Increasing options activity is also being seen in TEVA, Decker Outdoor (DECK) and Yum Brands (YUM).
————————————————————————————————
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.