Options Update: Under Armour (UA), Cree (CREE) & Applied Materials (AMAT)
Under Armour (UA)
UA put volatility elevated because shares difficult to borrow.
UA is recently trading at $45.02.
UA March option implied volatility is at 59, puts are at 77, above its 26-week average of 55, suggesting larger price movement.
UA puts volatility is higher than calls because UA is difficult to borrow.
Cree (CREE)
CREE volatility elevated as shares near three-year high.
CREE is recently down $1.04 to $33.
CREE is a manufacture of semiconductors for solid state lighting.
CREE March call option implied volatility is at 55, puts are at 77, above its 6-month average of 54, suggesting larger price movement.
CREE puts are priced higher than calls because CREE is difficult to borrow.
Applied Materials (AMAT)
AMAT February option prices up as expected into EPS & Outlook.
AMAT closed at $18.43.
AMAT is scheduled to report Q1 EPS after the market close on February 12.
COWN says, "Sentiment on AMAT has improved principally around increasing prospects for their emerging solar business and a rebound (shouldn't surprise anyone now)."
AMAT February 18 straddle is priced at $1.15.
AMAT March option implied volatility of 40 is above its 6-month average of 37.
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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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