Unusual Options Activity Update: KERX, AVP, GRPN, STD, DANG, GPS
Implied Volatility Mover
Implied volatility in the options on Kerx Biopharmaceuticals (KERX) is lower today after the company released trial results for its experimental treatment for colorectal cancer. The stock is down on the results, down $3.29 to $1.69 per share, on heavy volume of 29 million shares, which is 10X the expected volume for the biotech. Meanwhile, 25,000 calls and 19,000 puts traded in KERX and levels of implied volatility are down 30 percent, but still elevated at 124, now that trial results have been announced.
Volume Signals
Avon Products (AVP) options volume is running 25X the (22-day) average, with 49,000 contracts traded and call volume accounting for 59 percent of the volume..
Kerx Biopharmaceuticals (KERX) options volume is 3.5X the average daily, with 42,000 contracts traded and call volume representing for 57 percent of the activity.
Groupon (GRPN) options volume is running 3X the average daily, with 36,000 contracts traded and put volume accounting for 60 percent of the activity.
Increasing options activity is also being seen in Banco Santander (STD), eCommerce Dang Dang (DANG), and Gap Stores (GPS).
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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.
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