Options Update: CME Group (CME) & Nymex Holding Inc (NMX)
CME Group (CME)
CME volatility spikes as CME sells off 7% on DOJ call for reform.
CME is recently trading down $42 to $546.
The U.S. Department of Justice called for an end to futures exchanges being permitted to own or control clearing functions.
CME and NMX confirmed on January 28th that they are engaged in preliminary discussions regarding CME's potential acquisition of NMX.
CME February 550 straddle is priced at $41.05.
CME March option implied volatility of 49 is above its 26-week average of 32.
Nymex Holding Inc (NMX)
NMX is recently down $12.99 to $93.72.
NMX March option implied volatility of 60 is above its 26-week average of 40.
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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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