Midday Unusual Options Activity Update: ITUB, MMR, LDK, LLY, AEO, CLWR, GNW

Posted December 8th, 2011 by Joseph Cusick in Unusual Activity

Implied Volatility Mover And Volume Signals For Midday 12/8/2011

Implied Volatility Mover
Implied volatility in the options on Itau Unibanco Holding (ITUB) is moving higher today. Shares of the Sao Paulo-based money center bank are off 44 cents to $18.49 after Brazil's Bovespa Index gave up 2.6 percent Thursday. Options on ITUB are seeing brisk trading. 4,565 calls and 7,000 puts traded so far, which is about 4X the typical volume for midday action. January 17 puts are the most actives. 2,500 traded. Jan2013 25 calls, 20 puts, 22 calls, 15 puts and 17.5 puts are seeing interest as well. Meanwhile, implied volatility in options on the stock is moving up 9 percent to 44 amid the heavy trading in ITUB Thursday.

Volume Signals
McMoran (MMR) options volume is running 3.5X the (22-day) average, with 57,000 contracts traded and call activity accounting for 91 percent of the volume.

LDK Solar (LDK) options volume is 3X the average daily, with 31,000 contracts traded and call volume representing 61 percent of the activity

Eli Lilly (LLY) options volume is running 2.5X the average daily, with 31,000 contracts traded and call volume representing 61 percent of the total volume.

Increasing options activity is also being seen in American Eagle Outfitters (AEO), Clearwire (CLWR), and Genworth (GNW).

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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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