Implied Volatility Mover
Implied volatility in the options on Virgin Media (VMED) is moving higher amid increasing levels of put activity. The stock is down $1.17 to $32.96 after moving to new 52-week highs yesterday on the heels of earnings report. Shares faltered this morning after being hit with an analyst downgrade and after the company announced an offering of Senior Notes. On the options front, about 16,000 puts and 4,000 calls traded on VMED so far. 8 of the 10 most active contracts are put options, led by November 32, January 31, and December 30 puts. Meanwhile, implied volatility in the options on the stock is moving up 24 percent to 28.5.
Volume Signals
Tempur Pedic (TPX) options volume is running 11X the (22-day) average, with 55,000 contracts traded and call volume accounting for 65 percent of the volume.
Dow Chemical (DOW) options volume is 3.5X, the average daily, with 54,000 contracts traded and call volume representing for 84 percent of the activity.
Navistar (NAV) options volume is running 2X the average daily, with 23,000 contracts traded and put volume accounting for 73 percent of the activity.
Increasing options activity is also being seen in US Airways (LCC), Monster Beverage (MNST), and Virgin Media (VMED).
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