Midday Unusual Options Activity Update: CLWR, S, CREE, LLY, JCI, SWY

Posted October 7th, 2011 by Joseph Cusick in Unusual Activity

Implied Volatility Movers And Unusual Volume Movers For Midday 10/7/2011

Implied Volatility Movers

Clearwire (CLWR) implied volatility is sharply higher after Sprint announced that it will stop selling Clearwire compatible devices. CLWR is off 68 cents to $1.37 on the news. Options volume is running 4X the daily average. 9,250 puts and 8,000 calls traded on the stock so far. October 1 puts and January 1 calls are the most actives. Meanwhile, implied volatility in the options on the stock surged 43 percent and is very elevated at more than 250.

Unusual Volume Movers

Sprint Nextel (S) options volume is running 2.5X the (22-day) average, with 99,000 contracts traded and call activity accounting for 79 percent of the volume.

CREE options volume is 2.5X the average daily, with 66,000 contracts traded and call volume representing 81 percent of the activity.

Eli Lilly (LLY) options volume is running 3.5X the average daily, with 25,000 contracts traded and call volume representing 82 percent of the total volume.

Increasing options activity is also being seen in Johnson Controls (JCI), Safeway (SWY), and Clearwire (CLWR).

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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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