Options Update: Peabody Energy (BTU) & Countrywide Financial (CFC)
Peabody Energy (BTU)
BTU Volatility At 52; Shares Rally On Industry Consolidation
BTU, the world's largest private-sector coal company, is recently up $3.02 to $55.46.
Patriot Coal (PCX) announced the purchase of Magnum Coal Company for $709 million.
BTU call option volume of 5,813 contracts compares to put volume of 2,625 contracts.
BTU May option implied volatility of 52 is above its 6-month average of 46, suggesting larger price movement.
Countrywide Financial (CFC)
CFC Volatility Flat As Buyout Spread Stays Wide
CFC is recently trading at $6.27.
BAC announced on Jan. 11, 2008 it will pay CFC shareholders 0.1822 per share of BAC for each share they own. The value of the offer is $7.31.
CFC May option implied volatility of 80 is near its 14-week average of 78, suggesting non-directional risk.
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About Paul Foster
Paul Foster is a former member of the Chicago Board Options Exchange with 21-years of professional experience in the capital markets, investments, trading, corporate finance, arbitrage, options and mergers & acquisitions. His writing about the options market has appeared in a wide variety of publications.
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