Midday Unusual Options Activity Update: MDRX, XLB, MRVL, SUN, MRK, MDRX, BKS
Implied Volatility Mover
Implied volatility in the options on Allscripts (MDRX) is easing off of the high levels seen Friday. Shares took a hit late last week after the company lowered guidance, announced that some Board members are stepping down, and a CFO resigned. Active trading continues Monday. MDRX has rebounded and is up 63 cents to $10.93 on volume of 13 million shares. Options volume is 6.6X the daily average. 20,000 calls and 1,720 puts traded so far. September 12 calls are the most actives. 10,160 changed hands. Some investors might be selling the upside (out-of-the-money) calls, as 57 percent of the volume traded on the bid and levels of implied volatility in MDRX options is down 5 percent to 57 on the day.
Volume Signals
SPDR Basic Materials Fund (XLB) options volume is running 3.5X the (22-day) average, with 94,000 contracts traded and put volume accounting for 100 percent of the volume.
Marvel Technology (MRVL) options volume is 6X the average daily, with 42,000 contracts traded and call volume representing for 60 percent of the activity.
Sunoco (SUN) options volume is running 12X the average daily, with 34,000 contracts traded and call volume accounting for 85 percent of the activity.
Increasing options activity is also being seen in Merck (MRK), Allscripts (MDRX), and Barnes and Noble (BKS).
-----------------------------------------------------------------------
Disclaimers
This article is provided for informational purposes only. No statementin this article should be construed as a recommendation to buy or sell asecurity or to provide investment advice. The content provided has beenobtained from sources deemed reliable but is not guaranteed as toaccuracy and completeness. optionsXpress makes every effort to providetimely information to its recipients but cannot guarantee specificdelivery times due to factors beyond our control.
Derivatives involve substantial risk and are not appropriate for all investors. Please read the "Disclosure Statement for Futures and Options" prior to investing in futures or options.
For investments using a straddle or strangle options strategy thepotential loss is unlimited. Multi-leg option strategies are subject tomultiple commissions. Profits may be eroded by the commission expendedto open and close the positions and other risks apply.
"
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.
View Joseph Cusick's post archive >
