Implied Volatility Alert: ORCL, SEED
11/25/09
ORCL volatility of 26 at two-year lows
Oracle (ORCL) is recently up 47 cents to $22.61.
The company is waiting for regulatory approval of its $7.4 billion purchase of Sun Microsystems (JAVA).
Oracle is expected to report Q2 EPS on Dec. 18.
ORCL December and January option implied volatility of 26 is below its 26-week average of 33, according to Track Data, suggesting decreasing price movement.
SEED put volatility elevated after 100% rally in stock
Origin Agritech Ltd. (SEED) is recently up 14 cents to $10.65.
SEED rallied 100% on Nov. 23 after the Chinese government approved its genetically modified corn seed.
SEED December call option implied volatility is at 110, puts are at 172; January call volatility is at 88, puts are at 141; above its six-month average of 89, according to Track Data, suggesting large price movement.
Puts are more expensive than calls because SEED is difficult to borrow.
Posted at 2:20 p.m.
More Implied Volatility Alerts
Researcher Paul Foster has 23 years of professional experience in the capital markets, investments, trading, corporate finance, arbitrage, options, and mergers and acquisitions.
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