Options Update: Merrill Lynch (MER) & Intercontinental Exchange (ICE)
Merrill Lynch (MER)
MER Volatility Elevated; Shares Near Five-Year Low
MER closed at $41.89.
MER July option implied volatility of 57 is above its 6-month average of 48, suggesting larger price movement.
Intercontinental Exchange (ICE)
ICE July Volatility Flat On Creditex Purchase
ICE will purchase Creditex, a CDS inter-dealer broker, for $625 million (90% stock/10% cash).
Deutsche Bank says: "The deal is expected to be dilutive to 2008 and 2009 EPS."
ICE July option implied volatility of 48 is near its 6-month average, suggesting non-directional price risk.
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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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