Options Update: Energy Conversion (ENER) & Vivus (VVUS)
Energy Conversion (ENER)
ENER Volatility Flat; Shares Near Record High
ENER, a manufacturer of thin-film solar modules, closed at $56.10.
Calyon says: "The German solar feed-in tariff (FIT) is underfire, as lawmakers are considering an accelerated digression that would reduce rates 25% by 2010 versus 15% under current law."
ENER July option implied volatility of 58 is near its 6-month average, suggesting non-directional price risk.
Vivus (VVUS)
VVUS June Straddle Bid Up Into Final Results
VVUS closed at $7.36.
VVUS rallied 26% on May 23 after its obesity drug, Onexa, met its goal in treating diabetes patients in data from a mid-stage trial. Final results are expected on June 10.
Wachovia says: "Downgrade to Market Perform following recent run up."
VVUS June 7.5 straddle is priced at $1.80, July 7.5 straddle is priced at $2.30. This suggests 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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