Options Update: IBM Corp (IBM), Freddie Mac (FRE) & Arena Pharma (ARNA)
IBM Corp (IBM)
IBM Volatility Flat As IBM Rallies 4% On Additional $15B Stock Repurchase
IBM is recently trading up $4.52 to $114.58.
IBM board of directorstoday authorized $15 billion in additional funds for use in thecompany's stock repurchasing program.
IBM March option impliedvolatility of 27 is near its 26-week average,suggesting non-directional price movement.
Freddie Mac (FRE)
FRE March Volatility Elevated At 104 Q4 EPS And Outlook
FRE is recently down $.85 to $25.32.
FRE is scheduled to report Q4 2007EPS on Feb. 28.
Keefe Bruyette and Woods has a $22 price target on FRE.
FRE call option volume of 10,234 contracts compares to put volume of11,228 contracts.
FRE March option implied volatility of 104 is aboveits 26-week average of 53, suggesting largerprice movement.
Arena Pharma (ARNA)
ARNA March Volatility At 135 Into Earnings And Committee Review
ARNA, a clinical stage biopharmaceutical company focusing on G protein-coupled receptors (GPCRs), is recently trading at $7.04.
ARNA is scheduled to report Q4 EPS on February 27.
ARNA'S Lorcaserin 12-month Echocardiogram Data Safety Monitoring Committee review is soon. Lorcaserin is an obesity treatment.
ARNA March option implied volatility of 135 is above its 6-month average of 95, suggesting larger risk.
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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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