Implied Volatility Mover
Implied volatility in the options on Liberty Global (LBTYA) is up sharply, as the stock comes under pressure Tuesday. LBTYA is down $2.84 to $66.62 on reports the company is in talks with the UK’s Virgin Media (VMED) about a possible transaction. Shares of Virgin Media are rallying $6.31 to $45 on the headline. Meanwhile, LBTYA is down on heavy turnover of 2.5 million shares. 1,400 calls and 1,260 puts traded in the name and 30-day implied volatility in the options on the stock is up 26.5 percent to 26.5.
Volume Signals
Baidu.com (BIDU) options volume is running 2X the (22-day) average, with 109,000 contracts traded and put volume accounting for 54 percent of the volume.
Yum Brands (YUM) options volume is 4.5X, the average daily, with 76,000 contracts traded and put volume representing 68 percent of the activity.
Merck (MRK) options volume is running 3X the average daily, with 24,000 contracts traded and call volume accounting for 74 percent of the activity.
Increasing options activity is also being seen in Sandridge Energy (SD), Electronic Arts (EA), and Arch Coal (ACI).
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