Implied Volatility Alert: CAT, CREE
07/22/09
CAT puts active on lower volatility after financial report
Caterpillar (CAT) is recently down $1 to $38.45 after reporting better-than-expected EPS of 72 cents on a lower tax rate, hedging gains and LIFO liquidation benefits.
Buckingham Research Group says it's "still too early to aggressively buy shares."
CAT call option volume of 22,057 contracts compares to put volume of 149,099 contracts.
CAT August and November option implied volatility of 42 is below its six-month average of 56, according to Track Data, suggesting decreasing price movement.
CREE August calls active on flat volatility
Cree (CREE) is recently up $1.12 to $30.13.
The company is expected to report Q4 EPS in mid-August.
CREE August option implied volatility of 52 is near its 26-week average of 55.
Call option volume of 8,240 contracts compares to put volume of 850 contracts.
CREE August option implied volatility is at 52 and September is at 48, verses its six-month average of 55, according to Track Data, suggesting decreasing price movement after earnings.
Posted at 2:21 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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