Implied Volatility Alert: MSFT, ERTS
10/23/09
MSFT options active on strong quarter and 2010 outlook
Microsoft (MSFT) is recently up $1.40 to $27.99.
The company reported Q1 EPS of 40 cents, versus a consensus of 32 cents, on strong consumer demand and cost discipline.
MSFT call option volume of 372,944 contracts compares to put volume of 155,919 contracts.
MSFT November option implied volatility is at 22, below a level of 28 from Oct. 22, and below its six-month average of 31, according to Track Data, suggesting decreasing price movement.
ERTS December puts active into EPS
Electronic Arts (ERTS) is recently down 28 cents to $19.68.
The company is expected to release Q2 EPS on Oct. 26.
ERTS "Need for Speed" franchise has surpassed 100 million units sold, generating more than $2.7 billion in life-to-date sales.
ERTS December 17.5 Puts have traded 30 times on transaction volume of 5,056 contracts, above its open interest of 9,640 contracts.
ERTS November and December option implied volatility of 44 is near its 26-week average of 47, according to Track Data, suggesting non-directional price movement.
Posted at 2:45 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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