Midday Unusual Options Activity Update: HGSI, EBAY, QCOM, GILD, EMC, RVBD

Posted April 19th, 2012 by Joseph Cusick in Unusual Activity

Implied Volatility Mover

Implied volatility in the options on Human Genome Sciences (HGSI) dropped today after GlaxoSmithKline (GSK) made a $13 per share offer for the biotech. HGSI rejected the offer and said it would explore alternatives. HGSI shares, which were near 52-week lows and trading for only $7.17 yesterday, are up $7 to $14.16 today on heavy volume approaching 100 million shares. Options volume surged to 16X the daily average. 79,000 calls and 29,000 puts traded. Implied volatility in HGSI options is down 50 percent to 40 now that a larger company has made a bid for the biotech.

Volume Signals

EBAY options volume is running 8.5X the (22-day) average, with 180,000 contracts traded and call volume accounting for 51 percent of the volume.

Qualcom (QCOM) options volume is 3X the average daily, with 154,000 contracts traded and call volume representing for 58 percent of the activity.

Human Genome Sciences (HGSI) options volume is running 15X the average daily, with 99,000 contracts traded and call volume accounting for 74 percent of the activity.

Increasing options activity is also being seen in Giliead Sciences (GILD), EMC, and Riverbed Technology (RVBD).

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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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