Options Update: MF Global (MF) & Suncor (SU)
MF Global (MF)
MF Volatility Spikes To 63 On $141M Loss On Unauthorized Wheat Trade
MF, a broker of exchange-listed futures and options, is recently down $5.73 to $23.60 after disclosing a bad debt provision of $141 million in response to unauthorized personal trading activity by one of the company's registered representatives.
Bank of America says, "The questions raised around the company's risk-management practices are likely to keep the stock depressed for quite some time."
MF call option volume of 4,287 contracts compares to put volume of 3,451 contracts.
MF April option implied volatility of 63 is above its 26-week average of 41, suggesting larger price risk.
Suncor (SU)
SU Volatility Low On 2-For-1 Stock Split And 100 Oil
SU announced a two-for-one share split.
SU, an integrated energy company with Canadian oil sand operations, is recently up $3.94 to $106.72.
WTI Crude oil is recently up 0.30% to $100.
SU March option implied volatility of 33 is below its 26-week average of 36, suggesting decreasing price risks.
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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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