Midday Unusual Options Activity Update - ESRX, MHS, CVS, AET, BRCM, RRC, SYMC, BRCD, AMLN
Posted on 7/28/2010 in Unusual Activity by Joseph Cusick
Implied Volatility Movers
Express Scripts (ESRX) implied volatility is moving higher ahead of its earnings, due out today after the closing bell. Peer Medco Health (MHS) tumbled 8.1 percent when it released results last week. CVS and Aetna (AET) are seeing post-earnings weakness today. This sector has been volatile and, consequently, some investors are bracing for a big move in ESRX. 8,470 calls and 6,580 puts traded in the name so far. Implied volatility is up 5 percent to 40 and has risen 12 percent in the past week.
Unusual Volume
Broadcom (BRCM) options volume is running 4X the usual, with 37,000 contracts traded and put volume accounting for about 67 percent of the activity.
Range Resources (RRC) options activity is running 7.5X the usual, with 35,000 contracts traded and call volume representing 76 percent of the volume.
Symantec (SYMC) options volume is running 3.5X the usual, with 34,000 traded and call volume representing 98 percent of the activity.
Unusual volume is also being seen in Brocade (BRCD), Amylin Pharmaceuticals (AMLN), and CVS.
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