Options Update: Motorola (MOT) & PepsiCo (PEP)
Motorola (MOT)
MOT volatility stays elevated at 47 after MOT announces exploring alternatives.
MOT is recently at $11.49.
In a press release on Jan. 31, MOT indicated that the company is exploring a structural and strategic realignment of its business to maximize value.
MOT overall option implied volatility of 47 is above its 6-month average of 35, suggesting larger movement.
PepsiCo (PEP)
PEP volatility up into EPS & Guidance.
PEP is recently at $67.22.
PEP is scheduled to report Q4 EPS on Feb. 7.
DBAB says, "We remain cautious on the outlook which will be provided for 2008. Maintain Hold."
PEP February straddle is priced at $2.95.
PEP March option implied volatility of 25 is above its 6-month average of 20.
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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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