Midday Unusual Options Activity Update: ADBE, KBE, AMRN, TIF, RF, BKS
Implied Volatility Mover
Implied volatility in the options on Adobe (ADBE) is down sharply after the software-maker released earnings Monday afternoon. Adobe lost $1.49 to $33.02 on the news and options volume is heavy, with 21,000 calls and 18,000 puts. Some investors might be liquidating bullish positions on the stock, as April 32, April 33, April 35, July 32, and July 33 calls are actively traded and much of the flow is trading on the bid, which suggests sellers are dominating the flow. Meanwhile, levels of implied volatility are down 39 percent to 23 and the drop in vols seems to be also consistent with premium writing in Adobe Tuesday.
Volume Signals
Adobe Systems (ADBE) options volume is running 6X the (22-day) average, with 38,000 contracts traded and call volume accounting for 53 percent of the volume.
SPDR Banking Fund (KBE) options volume is 7X the average daily, with 31,000 contracts traded and call volume representing for 100 percent of the activity.
Amarin Corp (AMRN) options volume is running 2.5X the average daily, with 24,000 contracts traded and call volume accounting for 68 percent of the activity.
Increasing options activity is also being seen in Tiffany (TIF), Regions Financial (RF), and Barnes and Noble (BKS).
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About Joseph Cusick
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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