Midday Unusual Options Activity Update: RSH, LXK, RENN, MAT, SEE, ARMH
Implied Volatility Mover
Radioshack (RSH) implied volatility is up sharply today, as shares fall $2.91 to $7.32 on volume of 29 million shares, which is more than 6X the daily average for the electronics retailer, after the company lowered its fourth quarter earnings guidance. Options volume is running 15X the daily average. 18,000 calls and 26,000 puts traded on Radioshack so far. July 8 puts and Feb 8 calls are the most actives, as players jockey for position in anticipation of the stock's next move. The heavy trading and big move in the underlying sent levels of implied volatility in RSH options up 55 percent to 65.
Volume Signals
Radioshack (RSH) options volume is running 15X the (22-day) average, with 42,000 contracts traded and put activity accounting for 60 percent of the volume.
Lexmark (LXK) options volume is 11.5X the daily average, with 23,000 contracts traded and put volume representing 73 percent of the activity.
RenRen (RENN) options volume is running 2X the average daily, with 20,000 contracts traded and call volume representing 72 percent of the total volume.
Increasing options activity is also being seen in Mattel (MAT), Sealed Air (SEE), and ARM Holdings (ARMH).
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