Midday Unusual Options Activity Update: SBUX, S, AKAM, CLWR, GG, TEVA, ATPG

Posted July 28th, 2011 by Joseph Cusick in Unusual Activity

Implied volatility movers and unusual volume movers for midday 7/28/2011

Implied Volatility Movers

Starbuck's (SBUX) options are actively traded and implied volatility is moving higher ahead of earnings. There seems to be some optimism building, because shares are up $1.65 to $40.62. Meanwhile, 24,000 calls and 13,000 puts traded in the name so far. August 39, 40 and 41 calls are the most actives, as some investors appear to be taking positions on hopes for a post-earnings rally in Starbucks. Implied volatility has moved up 6 percent to 34 ahead of the results, due out after the closing bell.

Unusual Volume Movers

Sprint Nextel (S) options volume is running 5X the (22-day) average, with 92,000 contracts traded and call activity accounting for 72 percent of the volume.

Akamai (AKAM) options volume is 4X the average daily, with 68,000 contracts traded and put volume representing 52 percent of the activity.

Clearwire (CLWR) options volume is running 17X the average daily, with 52,000 contracts traded and put volume representing 69 percent of the total volume.

Increasing options activity is also being seen in Goldcorp (GG), Teva Pharmaceuticals (TEVA) and ATP Oil and Gas (ATPG).

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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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