Unusual Options Activity Update: WIN, CSCO, PCS, AVP, TEVA, CRM

Options Unusual Activity

Unusual Options Activity Update: WIN, CSCO, PCS, AVP, TEVA, CRM

Posted May 10th, 2012 by The Options Insider in Unusual Activity

Implied Volatility Mover
Implied volatility in the options on Windstream (WIN) is moving higher. Shares of the Little Rock, AR communications and technology company are down $1.20 to $10.06 on heavy volume after the company reported earnings that fell short of expectations. 17,000 puts and 6,500 calls traded in WIN, which is more than 30X the daily average. Meanwhile, implied volatility, which typically moves lower after a company releases its earnings report, is up 30 percent to 30. The fact that IV is moving higher after earnings seems to suggest that there was something in the report that triggered concerns about additional losses in the underlying stock. The high levels of put activity may be expressing bearish sentiment and the risk that WIN might lose in the weeks ahead.

Volume Signals
Cisco Systems (CSCO) options volume is running 5.5X the (22-day) average, with 554,000 contracts traded and call volume accounting for 54 percent of the volume.

MetroPCS (PCS) options volume is 32X the average daily, with 92,000 contracts traded and call volume representing for 67 percent of the activity.

Avon Products (AVP) options volume is running 3.5X the average daily, with 78,000 contracts traded and call volume accounting for 61 percent of the activity.

Increasing options activity is also being seen in TEVA and Salesforce.com (CRM).

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