Midday Unusual Options Activity Update: PCS, HPQ, WMB, MRO, ACI, GPS

Implied Volatility Mover
Implied volatility in the options on MetroPCS (PCS) is moving higher amid active trading in the options on the stock. After a big jump Tuesday, shares fell yesterday after the company confirmed that it will combine with T-Mobile. The deal will involve a reverse stock split and paying shareholders $4.09 per share, before the split. The stock was down again today, then halted, and is up 13 cents to $12.37 now that trading has resumed. Options volume on the stock is running 8X the daily average, with about 75,000 calls and 10,000 puts traded on the ticker so far. January 10 calls, November 13 calls, and February 12 calls are the most actives and implied volatility in PCS options jumped 25 percent to 53.5.

Volume Signals
Hewlett Packard (HPQ) options volume is running 2.5X the (22-day) average, with 158,000 contracts traded and put volume accounting for 52 percent of the volume.

Williams Companies (WMB) options volume is 4X, the average daily, with 105,000 contracts traded and call volume representing for 87 percent of the activity.

MetroPCS (PCS) options volume is running 8.5X the average daily, with 87,000 contracts traded and call volume accounting for 88 percent of the activity.

Increasing options activity is also being seen in Marathon Oil (MRO), Arch Coal (ACI), and Gap Stores (GPS).

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