Implied Volatility Alert: MRK, SGP, NVDA
07/09/09
MRK volatility flat into EPS and close of SGP merger
Merck (MRK) is recently down $1.20 to $26.86.
MRK is scheduled to report Q1 earnings on July 21.
Natixis Bleichroeder downgraded MRK to Hold from Buy.
SGP and Merck merger is expected to close before year-end
Schering-Plough (SGP) shareholders will receive 0.5767 shares and $10.50 in cash for each share of SGP. MRK call option volume of 4,260 contracts compares to put volume of 6,264 contracts.
MRK July and August option implied volatility of 39 is near its 26-week average of 40, according to Track Data, suggesting non-directional price movement.
NVDA volatility of 62 near 12-month lows
Nvidia (NVDA) is recently up 24 cents to $10.34.
NVDA is expected to report earnings in mid August.
Chatter has been circulating Apple (AAPL) will no longer use NVDA's chips for next-generation notebooks and desktops.
NVDA August and September option implied volatility of 62 is below its 26-week average of 67, according to Track Data, suggesting decreasing price movement.
Posted at 3:07 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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