Midday Unusual Options Activity Update - BMTI, AIG, BSX, DOW, LCC, CLWR, LOW
Implied Volatility Movers
Biometric Therapeutics (BMTI) shares plummeted and implied volatility jumped ahead of an FDA decision regarding the company's home-graft device. There's apparently talk that the FDA has some concern about the safety and risk/benefits of the device. Shares sank 35 percent to $8.66 Tuesday morning. 14,000 calls and 12,000 puts traded in the name. Implied volatility is up 44 percent and is very elevated at 220.
Unusual Volume
AIG options volume is running 2.5X the (22-day) average, with 65,000 contracts traded and call volume accounting for about 85 percent of trades.
Boston Scientific (BSX) options volume is 9X the average daily, with 51,000 contracts traded and put volume representing for 57 percent of the activity.
Dow Chemical (DOW) options volume is running 3X the average daily, with 48,000 contracts traded and put volume accounting for 95 percent of the activity.
Increasing options activity is also being seen in US Airways (LCC), Clearwire (CLWR), and Lowe's (LOW).
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About Joseph Cusick
Joseph Cusick currently serves as the Senior Vice President of Education and a Senior Market Analyst for optionsXpress. Mr. Cusick seeks out common sense and technologically scalable educational pathways for self-directed investors of all experience levels. He is largely responsible for ramping up delivery of online and offline seminars to customers and potential clients worldwide. Prior to serving in his current role, Mr. Cusick immersed himself in the broker side of optionsXpress by managing his own book of business. Prior to joining optionsXpress, Mr. Cusick served as a market maker and portfolio manager at the Chicago Board of Options Exchange. Joseph is a graduate of Marquette University and holds his Series 4, 7 and 63 registrations with FINRA.
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