Implied Volatility Mover
Implied volatility in the options on FedEx (FDX) is falling to 52-week lows. The stock is down $2.10 to $87.18 in active trading of 3.2 million shares after the company delivered an earnings report that fell short of expectations. While the headline EPS number and revenues for the first quarter beat Street estimates, FedEx lowered its guidance for the second quarter and the fiscal year. Options volume is running 3.5X the daily average, with about 9,380 calls and 13,000 puts traded on the stock so far. Post-earnings volatility crush is sending implied volatility in FDX options down 12 percent to 19 and its lowest levels of the year.
Volume Signals
Procter & Gamble (PG) options volume is running 3.5X the (22-day) average, with 62,000 contracts traded and call volume accounting for 86 percent of the volume.
IAM Gold (IAG) options volume is 7X, the average daily, with 49,000 contracts traded and call volume representing for 95 percent of the activity.
Melco Crown Entertainment (MPEL) options volume is running 15X the average daily, with 37,000 contracts traded and call volume accounting for 100 percent of the activity.
Increasing options activity is also being seen in MEMC (WFR), Broadcom (BRCM), and FedEx (FDX).
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