Implied Volatility Mover
Implied volatility in the options on Western Union (WU) is up today after the stock fell $4.93 to $13. Volume is a heavy 34.5 million shares and the stock is under fire after the company reported in-line quarterly results yesterday afternoon, but revenues were shy of expectations and the company also guided estimates lower for the full year. 6,800 calls and 7,750 puts traded on the stock. November 13 puts and May 14 calls are the most actives in WU and 30-day implied volatility is moving up 23 percent to 30.
Volume Signals
Ford Motor (F) options volume is running 2.5X the (22-day) average, with 177,000 contracts traded and call volume accounting for 83 percent of the volume.
Disney (DIS) options volume is 3X, the average daily, with 35,000 contracts traded and call volume representing for 52 percent of the activity.
Groupon (GRPN) options volume is running 2.5X the average daily, with 38,000 contracts traded and put volume accounting for 62 percent of the activity.
Increasing options activity is also being seen in Lowe’s (LOW), United Rentals (URI), and Herbalife (HLF).
————————————————————————————————
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.