Implied Volatility Mover
Implied volatility in the options on Dollar Thrifty (DTG) moved higher after the FTC said it needs more time to review the company’s proposed merger with Hertz (HTZ). The stock is down $1.26 to $85.55 and options volume on DTG is running 5.5X the daily average. 6,130 puts and 810 calls traded. Some investors might be concerned that the deal is in jeopardy. Implied volatility in DTG options, which was only 4 percent yesterday due to expectations for a merger, is up to 14 percent.
Volume Signals
Green Mountain Coffee Roasters (GMCR) options volume is running 2.5X the (22-day) average, with 92,000 contracts traded and call volume accounting for 92 percent of the volume.
EBAY options volume is 2.5X, the average daily, with 81,000 contracts traded and call volume representing for 75 percent of the activity.
Encana (ECA) options volume is running 12.5X the average daily, with 77,000 contracts traded and call volume accounting for 98 percent of the activity.
Increasing options activity is also being seen in Lamar Advertising (LAMR), Abbot Labs (ABT) and Sandisk (SNDK).
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