Options Update: Fannie Mae (FNM), LDK Solar (LDK) & United Therapeutics (UTHR)
Fannie Mae (FNM)
FNM volatility elevated at 80; shares sell off on downgrade.
FNM down $1.28 to $27.72.
Merrill Lynch downgraded FNM to Sell from Neutral saying weakness in housing, credit and financial markets will affect its earnings for years.
FNM call option volume of 20,651 contracts compares to put volume of 21,127 contracts.
FNM March option implied volatility of 80 is above its 6-month average of 53, suggesting larger price fluctuations.
LDK Solar (LDK)
LDK volatility at 99 into EPS and Guidance.
LDK is expected to report Q4 EPS on February 25.
LDK, a manufacturer of multicrystalline solar wafers, closed at $31.11.
LDK March option implied volatility of 99 is above its 6-month average of 89, suggesting larger price movement.
United Therapeutics (UTHR)
UTHR May volatility at 49 into expected full data.
UTHR's Remodulin is a treatment for pulmonary arterial hypertension.
Full data from Phase three inhaled Remodulin trial should be available at the American Thoracic Society (ATS) meeting in May.
UTHR May option implied volatility of 49 is near its 26-week average, suggesting non-directional price movement.
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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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