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 3/10 Fair --- seekingalpha.com http://seekingalpha.com/tag/todays-market.xml
| 'Today's Market' Tag RSS Syndication from SeekingAlpha.com ... |
Wednesday, May 14, 2008 --- 53 days ago http://seekingalpha.com/article/77065-tuesday-s-options-outlook-hpq-ccu-stz-wnr-
| Hewlett-Packard (HPQ)
– Confirmation
of the PC and printer maker's acquisition of data systems operator Electronic Data Systems (EDS)
has Hewlett-Packard shares ticking in 6.4% lower at $43.83 this morning.
Implied volatility on its options remains elevated at 32.3%, suggesting 14%
added price risk to its shares in the coming 30 days than has been proven
historically. Early on we observed a hike in option trading volume to 6.5 times
the normal level, with heavy trading in June 45 and 47.50 calls in excess of
open interest. Volatility traders in Hewlett-Packard appear drawn to the August
45 line, where a 10,000-lot straddle may have gone through. The combined price
of this position costs $5.35 this morning, and with both sides trading to the
middle of the market we cannot establish directionality. Calls and puts in
Hewlett-Packard as measured in its 608,000-strong open interest were evenly
split heading into today.
Clear Channel (CCU)
– An
early-morning break in courtroom settlement talks concerning the buyout of
radio broadcaster Clear Channel sent implied volatility momentarily
higher by some 82%, but this quickly receded as talks presumably resumed. With
shares 1.2% higher at $33.25 ahead of the noon hour, its option remain heavily
trafficked, particularly in the July contract, where it appears that 5,000-lot
spreads may be going through in the calls at strikes 32.50 and 35. Comparable
volumes are going through in p ... |
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