Unusual Options Activity Update: CALL, EFA, PFE, XRX, JCP, COF, CAR
Implied Volatility Mover
MagicJack (CALL) is under pressure and implied volatility in the options on the stock is moving higher amid increasing volumes today. The stock is off $1.16 to $23.79 on volume of 429,000 shares. Meanwhile, 2,060 calls and 3,595 puts traded on the voice-over-internet service provider. Itís not clear what is driving the increasing options action, which is running more than double the typical levels. Yet, levels of implied volatility in the options on the stock are up another 21 percent and elevated at 102, as some investors seem to be anticipating increased price swings in MagicJack shares in the weeks ahead.
Volume Signals
iShares MSCI EFA Fund (EFA) options volume is running 4.5X the (22-day) average, with 226,000 contracts traded and put volume accounting for 95 percent of the volume.
Pfizer (PFE) options volume is 2.5X the average daily, with 102,000 contracts traded and call volume representing for 63 percent of the activity.
Xerox (XRX) options volume is running 10X the average daily, with 88,000 contracts traded and call volume accounting for 96 percent of the activity.
Increasing options activity is also being seen in JC Penney (JCP), Capital One (COF), and Avis (CAR).
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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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