Implied Volatility Alert: STEC, UNH, VIX
11/04/09
STEC volatility decreases; shares sell off 34% on inventory outlook
STEC Inc. (STEC) is recently down $8.03 to $15.13 after warnings that its memory-product inventory will stay high.
STEC manufactures storage drives called Enterprise Flash Drives (EFDs) for the enterprise solid-state drive (SDD) market.
STEC call option volume of 21,456 contracts compares to put volume of 15,776 contracts.
STEC November option implied volatility is at 92, below a level of 112 from Nov. 3. December is at 81, above its six-month average of 72, according to Track Data, suggesting larger price movement.
UNH options active on flat volatility; shares rally on GOP governorship wins
UnitedHealth Group (UNH) is recently up $1.22 to $28.15.
The GOP won two governor's races in New Jersey and Virginia.
UNH call option volume of 29,365 contracts compares to put volume of 17,811 contracts.
UNH November and December option implied volatility of 48 is near its six-month average of 47, according to Track Data, suggesting non-directional price movement.
VIX down into FOMC policy and rate decision
The CBOE Volatility Index (VIX) is recently down 1.45 to 27.36 into the FOMC policy and rate decision.
Posted at 1:50 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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