Implied Volatility Mover
Implied volatility in the options on MGM is moving higher along with the stock price today. Shares of the casino operator are up 9.4 percent to $13.45 after Bloomberg reported that Kirk Kerkorian’s Tracinda Group is possibly looking to increase its stake in the company. The investment manager currently owns 18.6 percent of MGM and is considering an increase to as much as 25 percent. The stock is up $1.04 to $13.45 on blistering volume of more than 23 million shares. Meanwhile, 45,000 calls and 24,000 puts traded in MGM, which is almost 4X the daily average, and implied volatility rose 14.5 percent to 31.5.
Volume Signals
MGM options volume is running 4X the (22-day) average, with 69,000 contracts traded and call volume accounting for 65 percent of the volume.
Aetna (AET) options volume is 9.5X, the average daily, with 62,000 contracts traded and put volume representing 99 percent of the activity.
Cheniere Energy (LNG) options volume is running 3X the average daily, with 34,000 contracts traded and call volume accounting for 60 percent of the activity.
Increasing options activity is also being seen in Suntech (STP), Rite Aid (RAD), and UltraPetroleum (UPL).
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