Options Update: Bank of New York (BK) & Merrill Lynch (MER)
Bank of New York (BK)
BK Put Volume And Volatility Elevated Into Q1 EPS
BK is scheduled to report Q1 EPS on April 17.
BK has more than $23 trillion in assets under custody and administration and more than $1.1 trillion in assets under management.
BK call option volume of 5,199 contracts compares to put volume of 10,438 contracts.
BK April option implied volatility of 56 is above its 26-week average of 38, suggesting larger risk.
Merrill Lynch (MER)
MER Put Volume Heavy: Volatility Decreases
MER is recently down $.55 to $45.16.
Sandler O'Neill who has a $47 price target on MER says: "Capital levels appear adequate, assuming operating losses do not become recurring theme in 2008."
MER call option volume of 25,992 contracts compares to put volume of 83,978 contracts.
MER April option implied volatility is at 85, May at 74. This is above its 26-week average of 51, suggesting larger price movement
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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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