Implied Volatility Mover and Volume Signals for Thursday, January 10, 2013
Implied Volatility Mover
Implied volatility in the options on Molycorp (MCP) is moving higher, as the stock moves lower Thursday. Shares of the rare earth metals company are down $2.26 to $8.53 on heavy turnover of 32.5 million shares after the company lowered its 2013 earnings outlook. Options volume is 3X the daily average, with 48,000 calls and 51,000 puts so far. Weekly (1/11) 8.5 puts are the most actives, with 6,855 contracts changing hands. At the same time, 30-day ATM implied volatility in MCP is moving up 13 percent to 84.5.
Volume Signals
Nokia (NOK) options volume is running 3X the (22-day) average, with 234,000 contracts traded and put volume accounting for 60 percent of the volume.
Herbalife (HLF) options volume is 2X, the average daily, with 136,000 contracts traded and put volume representing 64 percent of the activity.
Molycorp (MCP) options volume is running 2.5X the average daily, with 89,000 contracts traded and put volume accounting for 53 percent of the activity.
Increasing options activity is also being seen in Applied Materials (AMAT), (Supervalu SVU), and Tiffany (TIF).
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