Midday Unusual Options Activity Update: MGM, GMCR, HLF, V, ROST, LVLT

Posted May 3rd, 2012 by Joseph Cusick in Unusual Activity

Implied Volatility Mover
Implied volatility in the options on MGM is easing after the company reported a wider-than-expected quarterly loss before the opening bell Thursday morning. MGM is down 48 cents to $13.07 in active trading of 16 million shares. Options volume on the casino-operator is running 2.5X the daily average, with some investors apparently anticipating additional volatility ahead of the weekend. Weekly calls at the $13 and $14 strike, which expire after tomorrow, are the most actives. Meanwhile, implied volatility in MGM options is down 12 percent to 36.5 now that the earnings event-risk has passed.

Unusual Volume
Green Mountain Coffee Roasters (NASDAQ:GMCR) options volume is running 5X the (22-day) average, with 165,000 contracts traded and call volume accounting for 52 percent of the volume.

Herbalife (NYSE:HLF) options volume is 4X the average daily, with 54,000 contracts traded and call volume representing for 55 percent of the activity.

Visa (NYSE:V) options volume is running 2X the average daily, with 41,000 contracts traded and call volume accounting for 62 percent of the activity.

Increasing options activity is also being seen in MGM, Ross Stores (NASDAQ:ROST), and Level 3 (NASDAQ:LVLT).

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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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