Midday Unusual Options Activity Update - ETFC, IP, BYD, MIR, DNDN, MEE, BAC, EWT, CIT, KEY, GT
Implied Volatility Movers
Etrade Financial (ETFC) implied volatility is moving higher after the online broker reported earnings that fell short of analyst estimates and also warned that it would need to raise more capital. ETFC is down 79 cents, or 32.1 percent, to $1.67 and implied volatility is up to 170, from about 164 the day before.
Implied volatility is also higher in International Paper (IP), Boyd Gaming (BYD), and Mirant (MIR). Meanwhile, implied volatility is falling in Dendreon (DNDN), Massey Energy (MEE), and BofA (BAC).
Unusual Volume Movers
Dendreon (DNDN) options volume is running 2X the usual. 240,000 contracts traded and put volume accounts for 55 percent of the activity.
iShares Taiwan Fund (EWT) options activity rose to 150X the usual. 59,000 contracts traded and call volume representing 59 percent of the activity.
eTrade Financial (ETFC) options activity is running 3X the usual. 54,000 contracts traded and call volume accounting for about half of the day's activity.
Increasing volume was also seen in CIT Group (CIT), Key (KEY), and Goodyear Tire (GT).
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About Frederic Ruffy
Frederic Ruffy is a Freelance Writer and Options Trading Strategist. In addition to writing market commentary and trading-related books and articles, Fred has also worked as an instructor, educating investors on advanced topics like measuring volatility, the benefits of sector rotation and the risks and potential profits from trading around earnings. His market observations are mentioned frequently in the financial press and he currently trades stocks, futures, and options in Salt Lake City, Utah.
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