Unusual Options Activity Update: LPS, RIMM, YHOO, DAL, T, TEVA, TBT

Posted December 19th, 2011 by Joseph Cusick in Unusual Activity

Implied Volatility Mover And Volume Signals For Midday 12/19/2011

Implied Volatility Mover
Lender Process Services (LPS) implied volatility was up sharply Friday after the Nevada Attorney General filed a lawsuit against the company alleging consumer fraud. Shares plummeted 17.5 percent to $14.30 on the session. About 12,000 calls and 5,900 puts traded on the stock, which is 24X the daily average. March 14 puts and March 18 calls were the most actives. Meanwhile, implied volatility in options on the stock rose 19.5 percent to 69, as players in the options market jockeyed for position in anticipation of the next move in LPS.

Volume Signals
Options volume in Research In Motion (RIMM) was 5X the (22-day) average on Friday, with 562,000 contracts traded and put activity accounting for 64 percent of the volume.

Yahoo (YHOO) options volume Friday was 2.5X the average daily, with 326,000 contracts traded and call volume representing 74 percent of the activity.

Delta Airlines (DAL) options volume on Friday was running 4.5X the average daily, with 77,000 contracts traded and call volume representing 83 percent of the total volume.

Increasing options activity on Friday was also being seen in AT&T (T), Teva Pharmaceuticals (TEVA), and the Proshares Ultra Short Bond Fund (TBT).

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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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