Options Update: Force Protection (FRPT), China Finance Online (JRJC) & PMI Group (PMI)
Force Protection (FRPT)
FRPT volatility at 140 as shares near 18-month low.
FRPT designs and manufactures mine-resistant ambush protected (MRAP) vehicles to military customers.
FRPT is recently up $.23 to $4.85.
SPHN says: "Given the stock's 80% decline since mid-October, it may attract interest from acquirers seeking to build a presence in the potentially large tactical wheeled vehicle market." SPHN raised its price target to $5 from $4.
FRPT call option volume of 4,243 contracts compares to put volume of 1,000 contracts.
FRPT March option implied volatility of 140 is above its 26-week average of 92, suggesting larger risk.
China Finance Online (JRJC)
JRJC volatility at 132 on recent wide intra-day price action.
JRJC, a provider of online financial and listed company data and information in the People's Republic of China, is recently up $1.19 to $18.45.
JRJC call option volume of 3,338 contracts compares to put volume of 402 contracts.
JRJC February straddle is priced at $3.75.
JRJC March option implied volatility of 132 is above its 15-week average of 118, suggesting large price movement.
PMI Group (PMI)
PMI put volume heavy with March volatility elevated at 130.
PMI, a provider of credit enhancement products that promotes home ownership, is recently down $.02 to $9.79.
PMI call option volume of 1,718 contracts compares to put volume of 3,839 contracts.
PMI March option implied volatility of 130 is above its 26-week average of 89, suggesting larger price risks.
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About Paul Foster
Paul Foster is a former member of the Chicago Board Options Exchange with 21-years of professional experience in the capital markets, investments, trading, corporate finance, arbitrage, options and mergers & acquisitions. His writing about the options market has appeared in a wide variety of publications.
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