Options Update: Lehman (LEH) & Washington Mutual (WM)
Lehman (LEH)
LEH April Volatility Elevated At 74 As Shares At 30-Month Low
LEH is recently down $2.28 to $45.68.
The WSJ reported LEH suspended two traders in London on an inquiry into equity derivative trading; the sums are not seen as material.
LEH is expected to report Q1 EPS in mid March.
LEH call option volume of 8,003 contracts compares to put volume of 7,050 contracts.
LEH April option implied volatility of 74 is above its 26-week average of 51, suggesting non-directional price movement.
Washington Mutual (WM)
WM April Volatility Increases To 119 As Share Near 12-Year Low
WM is recently down $1.11 to $11.70.
WM call option volume of 8,736 contracts compares to put volume of 20,456 contracts.
WM April option implied volatility of 119 is above its 16-week average of 81, 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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