Midday Unusual Options Activity Update: INHX, JNPR, SNDK, DNDN, COST, REE, GME
Implied Volatility Mover And Volume Signals For Midday 1/9/2012
Implied Volatility Mover
Inhibitex (INHX) shares surged $13.88 to $23.75 after Bristol Myers(BMY) made a $26 per share cash bid for the company. Options on INHX areseeing very heavy trading on the news. 38,000 calls and 23,000 putstraded on the stock so far. January 20 calls are the most actives. 6,700traded. Jan 22.5 puts, May 15 calls, February 10 puts, and February22.5 puts are the next most actives. Meanwhile, implied volatility inINHX has plummeted 58 percent to 62, as shares might begin to seesmaller daily price swings now that BMY has made a cash bid for thecompany.
Volume Signals
Juniper Networks (JNPR) options volume is running 2.5X the (22-day) average, with 22,000 contracts traded and call activity accounting for 80 percent of the volume.
Sandisk (SNDK) options volume is 2X the average daily, with 31,000 contracts traded and call volume representing 88 percent of the activity.
Dendreon (DNDN) options volume is running 3X the average daily, with 39,000 contracts traded and call volume representing 71 percent of the total volume.
Increasing options activity is also being seen in Costco (COST), Rare Earth (REE), and Game Stop (GME).
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