Options Update: Focus Media (FMCN) & LDK Solar (LDK)
Focus Media (FMCN)
FMCN Volatility Elevated At 79 Into EPS
FMCN, a digital media company in China utilizing live motion displays,is scheduled to report Q1 EPS on June 5.
FMCN June option impliedvolatility of 79 is above its 6-month average of 68, suggesting larger price movement.
LDK Solar (LDK)
LDK Volatility Flat After Sharp Three-Month Rally
LDK, a manufacturer of multicrystalline solar wafers, closed at $46.05.
LDK June call option implied volatility is at 71, puts are at 81. This is nearits 6-month average of 78, suggestingnon-directional price risk.
LDK puts are priced higher than callsbecause LDK is difficult to borrow.
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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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