Unusual Options Activity Update: AOL, MU, DE, MYL, JCP
Implied Volatility Mover
AOL surged in premarket action and is up $8.38 to $26.80 through midday on heavy volume of 16.2 million shares after the New York-based media company struck a deal with Microsoft to sell approximately 800 patents for $1.06 billion. The stock is rallying around the news and 28,000 options traded on AOL so far. By way of comparison, typical volume through midday is about 500 contracts. 12,000 calls and 17,000 puts now traded in the name and levels of implied volatility moved up 36 percent to 48.
Volume Signals
Micron Technology (MU) options volume is 2X the average daily, with 151,000 contracts traded and call volume representing for 94 percent of the activity.
Deere (DE) options volume is running 2X the average daily, with 40,000 contracts traded and put volume accounting for 85 percent of the activity.
Increasing options activity is also being seen in AOL, Mylan (MYL), and JC Penney (JCP).
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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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