Options Update: Boeing (BA) & Cardiome Pharma (CRME)
Boeing (BA)
BA Volatility Flat Into Pentagon Decision On Aerial Tankers
BA is recently down $.51 to $84.06.
The Pentagon is expected to announce an aerial refueling tanker deal valued up to $40 billion on February 28 or 29. Cowen states, "Investors appear to assume a BA win while the air force insists it will pick a winner on the merits without political considerations."
BA March option implied volatility of 28 is near its 26-week average, suggesting non-directional price movement.
Cardiome Pharma (CRME)
CRME March Volatility At 172 Into FDA Ruling
CRME is recently down $.47 to $7.40.
The FDA's cardiovascular and renaldrugs advisory committee on Dec. 12, 2007 voted in favor of CRME's Kynapid. This is the intravenous formulation of vernakalant, a drug to restorenormal heart rhythm in patients with arterial fibrillation. The FDA isexpected to make a decision on whether to approve Kynapid soon.
CRMEMarch option implied volatility of 172 is above 6-month average of 139, suggesting larger 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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