Unusual Options Activity Update: SGI, FSLR, ABX, BRCM, VRX, BCS, XME

Posted December 14th, 2011 by Joseph Cusick in Unusual Activity

Implied Volatility Mover
Implied volatility in Silicon Graphics (SGI) is moving up amid increasing put volume today. Shares are down $1.97 to $12.06 today after Mark Barrenechea announced his resignation as President, CEO and Board member. Options volume is running 3.5X the daily average, with 2,180 calls and 750 puts traded on the graphics chips designer through midday. December 12, December 14 and March 10 puts are the most actives. Meanwhile, implied volatility in the options on the stock jumped 22 percent to 70.5.

Volume Signals
First Solar (FSLR) options volume is running 4X the (22-day) average, with 88,000 contracts traded and put activity accounting for 62 percent of the volume.

Barrick Gold (ABX) options volume is 2X the average daily, with 65,000 contracts traded and call volume representing 52 percent of the activity.

Broadcom (BRCM) options volume is running 2.5X the average daily, with 56,000 contracts traded and call volume representing 69 percent of the total volume.

Increasing options activity is also being seen in Valeant Pharmaceuticals (VRX), Barclayís Bank (BCS), and SPDR Metals and Mining ETF (XME).

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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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