Implied Volatility Mover
Implied volatility in the options on Constellation Brands (STZ) is up sharply, as the stock comes under fire Thursday. Shares dropped $7.74 to $31.43 on increasing volume after regulators reportedly blocked Inbev’s plans to buy Modelo. Constellation Brands is a distributor of Modelo in the US and was expected to benefit from the deal. Options on the stock are seeing increasing interest as well. 21,000 calls and 17,000 puts so far. February 37.5 calls and April 27.5 puts are the most actives and implied volatility rose 48 percent to 85.
Volume Signals
Fusion Io (FIO) options volume is running 4X the (22-day) average, with 42,000 contracts traded and put volume accounting for 53 percent of the volume.
Skyworks (SWKS) options volume is 3X, the average daily, with 25,000 contracts traded and call volume representing 78 percent of the activity.
Liberty Global (LBTYA) options volume is running 10.5X the average daily, with 25,000 contracts traded and call volume accounting for 93 percent of the activity.
Increasing options activity is also being seen in JDS Uniphase (JDSU), Taiwan Semi (TSN), and Marathon Petroleum (MPC).
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