Implied Volatility Mover
Implied volatility in the options on HCA is moving higher, as shares drop ahead of the Presidential elections. Some believe that HCA and other hospitals would benefit if President Obama is re-elected and his 2010 healthcare overhaul stays in place. However, Romney has pledged to repeal the plan if elected President. The uncertainty seems to be weighing on HCA, which is down $1.35 to $30.88. About 42,000 puts and 6,135 calls traded on the stock. Meanwhile, implied volatility in HCA options is moving up 18.5 percent to 63.
Volume Signals
SPDR Energy Fund (XLE) options volume is running 2.5X the (22-day) average, with 47,000 contracts traded and put volume accounting for 59 percent of the volume.
Express Scripts (ESRX) options volume is 11X, the average daily, with 84,000 contracts traded and call volume representing 65 percent of the activity.
Vivus Pharmaceuticals (VVUS) options volume is running 5X the average daily, with 58,000 contracts traded and call volume accounting for 70 percent of the activity.
Increasing options activity is also being seen in Decker Outdoor (DECK), HCA, and Micron Technology (MU).
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