Options Update: Merrill Lynch (MER) & April Implied Volatility Breakdown
Merrill Lynch (MER)
Merrill Lynch Out Of Money April Puts Active As Downside Hedge
MER is recently down $.31 to $46.32.
MER call option volume of 16,496 contracts compares to put volume of 49,275 contracts.
MER April option implied volatility of 70 is above its 26-week average of 46, suggesting hedging for downside risk.
MER April 30 ($16 out of the money) puts have traded 191 times on transaction volume of 20,899 contracts, above its open interest of 19,719 contracts.
Stocks With Aggressive April Option Implied Volatility & Liquid Volume
- Bear Stearns (BSC) April option implied volatility is at 229
- MF Global (MF) at 213
- Washington Mutual (WM) at 170
- US Airways (LCC) at 149
- AMBAC Financial (ABK) at 148
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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