Unusual Options Activity Update: LULU, FTR, GME, ATVI, GRA, XRX
Implied Volatility Mover
Lulumon Athletica (LULU) is down $6.51 per share loss and now trades for $63.51 after the companyís earnings fell short of expectations. Levels of implied volatility are easing, however, now that earnings event risk has passed and, as noted in yesterdayís midday report, some investors were initiating bearish plays in the stock ahead of the news. 19,000 calls and 32,000 puts traded in the name. Some investors are probably liquidating bearish positions after the stockís big drop Thursday morning and levels of implied volatility in LULU are down 32 percent to 46.
Volume Signals
Frontier Communications (FTR) options volume is running 3.5X the (22-day) average, with 22,000 contracts traded and call volume accounting for 100 percent of the volume.
Gamestop(GME) options volume is 2.5X the average daily, with 25,000 contracts traded and call volume representing for 78 percent of the activity.
Lulumon (LULU) options volume is running 2.5X the average daily, with 46,000 contracts traded and put volume accounting for 63 percent of the activity.
Increasing options activity is also being seen in Activision Blizzard (ATVI), WR Grace (GRA), and Xerox (XRX).
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