Midday Unusual Options Activity Update: SLE, SLV, SLW, IVN, ALU, WDC, GPS
Implied Volatility Mover
Implied volatility in Sara Lee (SLE) options is moving higher amid increasing levels of call activity. The stock is seeing relative strength Wednesday. Shares are up 23 cents to $20.39 and options volume includes 4,150 calls and 70 puts. Upside April 21 calls are the most actives. More than 3,000 traded. March 21 calls are seeing interest as well and implied volatility in the options on the stock is moving up 18 percent to 24, as some players in the options market appear to be buying upside call options in anticipation of a move higher in the stock in the weeks ahead.
Volume Signals
iShares Silver Fund (SLV) options volume is running 3X the (22-day) average, with 402,000 contracts traded and call activity accounting for 67 percent of the volume.
Silver Wheaton (SLW) options volume is 2X the daily average, with 48,000 contracts traded and call volume representing 55 percent of the activity.
Ivanhoe Mines (IVN) options volume is running 6.5X the average daily, with 28,000 contracts traded and call volume representing 98 percent of the total volume.
Increasing options activity is also being seen in Alcatel Lucent (ALU), Western Digital (WDC), and Gap Stores (GPS).
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Joseph Cusick currently serves as the Senior Vice President of Education and a Senior Market Analyst for optionsXpress. Mr. Cusick seeks out common sense and technologically scalable educational pathways for self-directed investors of all experience levels. He is largely responsible for ramping up delivery of online and offline seminars to customers and potential clients worldwide. Prior to serving in his current role, Mr. Cusick immersed himself in the broker side of optionsXpress by managing his own book of business. Prior to joining optionsXpress, Mr. Cusick served as a market maker and portfolio manager at the Chicago Board of Options Exchange. Joseph is a graduate of Marquette University and holds his Series 4, 7 and 63 registrations with FINRA.
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