Options Update: Alliance Data Systems (ADS) & Baidu (BIDU)
Alliance Data Systems (ADS)
ADS volatility elevated; BX buyout spread at 22% into EPS.
ADS is recently down $1.56 to $65.61.
ADS announced on May 17, 2007 it would be acquired for $81.75 in cash ($7.8 billion) by BX.
ADS is expected to announce Q4 EPS on January 30.
ADS February option implied volatility of 98 is above its 26-week average of 39, suggesting larger risk.
Baidu (BIDU)
BIDU volatility elevated at 81 as shares rally on renewed global equity optimism.
BIDU, a Chinese language internet search provider, is recently up $2.86 to $310.46.
Nikkei 225 is up 4.10%, DAX 30 is up 1.73% and the HANG SENG Index is up 6.73%.
BIDU over all option implied volatility of 81 is above its 6-month average of 66, suggesting larger price fluctuations.
"
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.
View Paul Foster's post archive >
