Options Update: Research in Motion (RIMM) & General Motors (GM)
Research in Motion (RIMM)
RIMM Volatility Low; Shares Near Record High
RIMM closed at $136.89.
Goldman Sachs says: "Our 12-month price targetis $163, up from $148."
RIMM June option implied volatility is at 40and July is at 50. This is below its 26-week average of 55, suggesting decreasing price movement.
General Motors (GM)
GM Volatility Up Into Truck Plant Closures; Shares Near 1982 Low
GM will cease production at four North American truck plants and willdo a strategic review of the Hummer brand.
GM is recently trading at$17.89 in pre-open trading, above its close of $17.44.
GM July optionimplied volatility of 63 is above its 26-week average of 57, 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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