Midday Unusual Options Activity Update: RIMM, VVUS, IVN, LO, AET, TIBX
Implied Volatility Mover
Research In Motion (RIMM) is up and implied volatility in the options on the Blackberry-maker is down today after the company reported earnings after the closing bell yesterday. Although the stock fell in the after hour session on the results Thursday, it has since bounced back and is up 84 cents to $14.57 and new session highs on volume approaching 60 million shares. Trading in the options is very active as well, with 142,000 calls and 207,000 puts traded in RIMM. Meanwhile, levels of implied volatility have dropped 38 percent to 51 now that the event risk has passed and the stock is holding gains on the news.
Volume Signals
Research In Motion (RIMM) options volume is running 3.5X the (22-day) average, with 323,000 contracts traded and put volume accounting for 61 percent of the volume.
Vivus Pharmaceuticals (VVUS) options volume is 2X the average daily, with 55,000 contracts traded and call volume representing for 69 percent of the activity.
Ivanhoe Mines (IVN) options volume is running 4X the average daily, with 23,000 contracts traded and put volume accounting for 96 percent of the activity.
Increasing options activity is also being seen in Lorillard (LO), Aetna (AET), and Tibco Software (TIBX).
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