Options Update: Goldcorp (GG), Stillwater Mining (SWC) & Lehman (LEH)
Goldcorp (GG)
GG Volatility Flat As Gold Approaches $1000 An Ounce
GG, Canada'sthird largest producer of gold, closed at $43.75.
Gold is recently up 0.36% to$987.70.
GG over all option implied volatility of 45 isnear its 6-month average, suggesting non-directionalprice risk.
Stillwater Mining (SWC)
SWC Volatility Elevated As Shares Spike To Six-Year High
SWC closed at $22.16.
SWC extracts, processes, refines andmarkets palladium and platinum.
SWC April option implied volatility of 82 isabove its 6-month average of 65, suggesting larger pricemovement.
Lehman (LEH)
LEH Volatility Elevated At 64 As Shares Near Two-Year Low On Bond Markets
LEH closed at $48.61.
LEH is expected to report Q1 EPS in midMarch.
Wachovia says, "If LEH can continue to demonstrate better than expectedrisk management, it should eventually gain multiple improvement. However, in themidst of a bear market for bonds, it very much remains a "show me" story."
LEHApril option implied volatility of 64 is above its 6-month average of 51, 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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