Midday Unusual Options Activity Update: SHLD, NLY, MJN, TOL, AU, VRX
Implied Volatility Mover And Volume Signals For Midday 12/27/2011
Implied Volatility Mover
Sears Holdings (SHLD) is under pressure and implied volatility in the options on the stock is moving up after the retailer warned that same store sales are down 5.2 percent so far this quarter. Sears also announced plans to shut 100 ñ 120 Kmart and Sears stores. Shares are down $11.50 to $34.25 and options volume is running 5.5X the daily average. 13,000 calls and 21,000 puts traded on the retailer so far. January 25 puts are the most actives and implied volatility in the options on the stock surged 31.5 percent to 88.
Volume Signals
Sears Holdings (SHLD) options volume is running 5X the (22-day) average, with 32,000 contracts traded and put activity accounting for 62 percent of the volume.
Annaly Capital (NLY) options volume is 3X the average daily, with 30,000 contracts traded and put volume representing 63 percent of the activity.
Mead Johnson (MJN) options volume is running 2.5X the average daily, with 15,000 contracts traded and call volume representing 75 percent of the total volume.
Increasing options activity is also being seen in Toll Brothers (TOL), Anglogold (AU), and Valeant Pharmaceuticals (VRX).
------------------------------------------------------------------------------------------
Disclaimers
This article is provided for informational purposes only. No statementin this article should be construed as a recommendation to buy or sell asecurity or to provide investment advice. The content provided has beenobtained from sources deemed reliable but is not guaranteed as toaccuracy and completeness. optionsXpress makes every effort to providetimely information to its recipients but cannot guarantee specificdelivery times due to factors beyond our control.
Derivatives involve substantial risk and are not appropriate for all investors. Please read the "Disclosure Statement for Futures and Options" prior to investing in futures or options.
"
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.
View Joseph Cusick's post archive >
