Midday Unusual Options Activity Update: RHT, DELL, HPQ, APC, GES, AEO, DMDN
Implied Volatility Mover
Implied volatility in the options on Red Hat (RHT) is moving higher, as the stock falls $3.57 to $52.75 in active trading of 1.7 million shares. Options volume on the software-maker through midday includes 2,790 puts and 1,485 calls. June 55 puts are the most actives. 1,089 traded and some investors were apparently taking positions this morning for $3.30 per contract when the stock was near $54. Implied volatility in the options on RHT has risen 27 percent to 48 on the session and the market on the June 55 puts on RHT is now $3.80 to $3.90.
Volume Signals
Dell Computer (DELL) options volume is running 8X the (22-day) average, with 150,000 contracts traded and put volume accounting for 61 percent of the volume.
H-P (HPQ) options volume is 3X the average daily, with 123,000 contracts traded and call volume representing for 52 percent of the activity.
Anadarko Petroleum (APC) options volume is running 2.5X the average daily, with 45,000 contracts traded and put volume accounting for 54 percent of the activity.
Increasing options activity is also being seen in Guess (GES), American Eagle (AEO), and Diamond Foods (DMDN).
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