Midday Unusual Options Activity Update: LNKD, USO, KBE, ALXA, AVP, VLO, NWL
Implied Volatility Mover
Implied volatility in the options on LinkedIn (LNKD) is falling today after the online social networking company reported better-than-expected first quarter earnings and revenues, and also guided estimates higher for the second quarter. LNKD is bucking the bearish trend and is up $6.85 to $116.26 in active trading of more than 7 million shares. Meanwhile, 36,000 calls and 29,000 puts traded on the stock and, now that the earnings event risk has passed, levels of implied volatility are down 34 percent to 54.5, compared to a 2012 range of 40.5 and 83.
Volume Signals
US Oil Fund (USO) options volume is running 2.5X the (22-day) average, with 142,000 contracts traded and call volume accounting for 54 percent of the volume.
SPDR Banking Fund (KBE) options volume is 35X the average daily, with 89,000 contracts traded and call volume representing for 50 percent of the activity.
Alexza Pharmaceuticals (ALXA) options volume is running 3.5X the average daily, with 74,000 contracts traded and call volume accounting for 98 percent of the activity.
Increasing options activity is also being seen in Avon Products (AVP), Valero (VLO), and Newell Rubbermaid (NWL).
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About Joseph Cusick
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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