Midday Unusual Options Activity Update: CEDC, UNG, WMT, XLB, GFI, MMM, BKS
Implied Volatility Mover
Implied volatility in the options on Central European Distributors (CEDC) is lower today. Shares of the beverage exporter are up 12.5 percent to $4.78 in active trading of 1.8 million shares after the company announced a deal with Russian Standard. Under the agreement, Russian Standard will invest $100 million in CEDC by buying shares and notes. Investors seemed to like the deal and CEDC is rallying around the news. Meanwhile, 6,640 calls and 1,124 puts traded on the stock, which is 3.5X the daily average, and levels of implied volatility are down 16 percent, but still elevated at 123.
Volume Signals
US Natural Gas Fund (UNG) options volume is running 2.5X the (22-day) average, with 105,000 contracts traded and put volume accounting for 77 percent of the volume.
Walmart (WMT) options volume is 4X the average daily, with 67,000 contracts traded and call volume representing for 54 percent of the activity.
SPDR Basic Materials Fund (XLB) options volume is running 2X the average daily, with 54,000 contracts traded and put volume accounting for 84 percent of the activity.
Increasing options activity is also being seen in Gold Fields (GFI), 3M (MMM), and Barnes and Noble (BKS).
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