Unusual Options Activity Update: ELN, PAY, IDIX, NFX, BZH, IVN, OC
Implied Volatility Mover
Implied volatility in the options on Elan (ELN) is moving up amid strength and high volume in the stock today. ELN is up $1.05 to $14.24 on volume of more than 5 million shares after a company Chairman apparently made comments about Tysabri Alzheimer drug potential and discussed the company becoming a takeover target. Trading in the options on the stock is picking up as well. 12,000 calls and 3,470 puts so far and implied volatility in ELN is moving up 22.5 percent to 57.
Volume Signals
Verifone Systems (PAY) options volume is running 3.5X the (22-day) average, with 32,000 contracts traded and put volume accounting for 72 percent of the volume.
Idenix (IDIX) options volume is 7.5X the average daily, with 28,000 contracts traded and call volume representing for 70 percent of the activity.
Newfield Exploration (NFX) options volume is running 11 the average daily, with 14,000 contracts traded and put volume accounting for 94 percent of the activity.
Increasing options activity is also being seen in Beazer Homes (BZH), Ivanhoe Mines (IVN), and Owens Corning (OC).
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