Unusual Options Activity Update: OVTI, XLV, RCL, BRCD, EL, MHR
Implied Volatility Mover
Omnivision Technology (OVTI) is seeing a flurry of options activity Friday. The stock is up 60 cents to $16.51 on heavy volume of 8.5 million shares after the Santa Clara, CA semiconductor company reported first quarter earnings of 21 cents per share, which was one penny shy of Street estimates. However, revenues topped expectations and the company also guided estimates higher for the second quarter. The stock is up and options volume is running 7X the daily average. 24,000 calls and 5,740 puts so far. Sep 17 and 18 calls are the most actives and implied volatility in OVTI options is down about 27.5 percent to 52, but still above the 52-week low of 40 seen in late-March.
Volume Signals
SPDR Healthcare Fund (XLV) options volume is running 4X the (22-day) average, with 38,000 contracts traded and call volume accounting for 88 percent of the volume.
Omnivision Technology (OVTI) options volume is 6.5X, the average daily, with 28,000 contracts traded and call volume representing for 80 percent of the activity.
Royal Caribbean (RCL) options volume is running 5.5X the average daily, with 27,000 contracts traded and call volume accounting for 63 percent of the activity.
Increasing options activity is also being seen in Brocade (BRCD), Estee Lauder (EL), and Magnum Resources (MHR).
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About Joseph Cusick
Joseph Cusick currently serves as the Senior Vice President of Education and a Senior Market Analyst for optionsXpress. Mr. Cusick seeks out common sense and technologically scalable educational pathways for self-directed investors of all experience levels. He is largely responsible for ramping up delivery of online and offline seminars to customers and potential clients worldwide. Prior to serving in his current role, Mr. Cusick immersed himself in the broker side of optionsXpress by managing his own book of business. Prior to joining optionsXpress, Mr. Cusick served as a market maker and portfolio manager at the Chicago Board of Options Exchange. Joseph is a graduate of Marquette University and holds his Series 4, 7 and 63 registrations with FINRA.
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