Unusual Options Activity Update: KFT, GLW, VLO, ALXA, LOW, CIEN, MCK
Implied Volatility Mover
Implied volatility in the options on Kraft Foods (KFT) is moving higher, as the stock moves lower Wednesday. KFT is down 1.3 percent to $37.77 and the biggest loser in the Dow Jones Industrial Average through midday after a Wall Street analyst cut the stock to Hold from Buy. Options on the food company are more active than usual. 4,900 puts and 1,900 calls traded in the name so far. March and April 37 puts are the most actives. Meanwhile, implied volatility in KFT options, which fell to 52-week lows of only 11 percent on 2/24, is up 7.5 percent to 13.5 Wednesday.
Volume Signals
Corning (GLW) options volume is running 2.5X the (22-day) average, with 51,000 contracts traded and call activity accounting for 84 percent of the volume.
Valero (VLO) options volume is 3.5X the daily average, with 37,000 contracts traded and call volume representing 67 percent of the activity.
Alexza Pharmaceuticals (ALXA) options volume is running 4X the average daily, with 33,000 contracts traded and call volume representing 99 percent of the total volume.
Increasing options activity is also being seen in Lowe's (LOW), Ciena (CIEN), and McKesson (MCK).
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