Implied Volatility Mover
Implied volatility in the options on Teavana (TEA) is moving higher. As noted in yesterday’s closing wrap, December 15 puts on the tea company saw unusual amounts of activity Monday. The flow seemed unusual because on 11/14 Starbuck’s had made a $15.5 per share cash offer to buy Teavana. Yet, today, TEA is ticking down 47 cents to $14.96 after a negative research piece about the company made the rounds. The story appears to be raising concerns about the buyout and puts on the stock are busy for a second day. About 50,000 puts and 7,600 calls traded on Teavana so far and 30-day implied volatilities are moving up 14 percent to 21.5.
Volume Signals
Hewlett Packard (HPQ) options volume is running 4.5X the (22-day) average, with 235,000 contracts traded and call volume accounting for 53 percent of the volume.
Green Mountain Coffee Roasters (GMCR) options volume is 4X, the average daily, with 133,000 contracts traded and call volume representing 83 percent of the activity.
Teavana (TEA) options volume is running 15.5X the average daily, with 58,000 contracts traded and put volume accounting for 87 percent of the activity.
Increasing options activity is also being seen in Best Buy (BBY), Agilent (A), and Cigna (CI).
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