Implied Volatility Alert: JAVA, WFMI
08/04/09
JAVA puts active on expected deal closure with ORCL
In April, Oracle (ORCL) announced the acquisition of Sun Microsystems (JAVA) for $9.50 per share. The deal is expected to close soon.
JAVA is recently down 1 cent to $9.16.
JAVA August option implied volatility of 16 is below its 18-week average of 19.
JAVA call option volume of 2,334 contracts compares to put volume of 6,993 contracts, according to Track Data, suggesting hedging for downside price movement.
WFMI puts active into EPS and outlook
Whole Foods (WFMI) is recently down 25 cents to $24.55.
The company is scheduled to report Q3 EPS after the market close today.
Goldman Sachs (GS) has a $19 price target on WFMI.
WFMI call option volume of 9,270 contracts compares to put volume of 29,512 contracts.
WFMI August call option implied volatility is at 72 and puts are at 76; September calls are at 57 and puts are at 63; verses its six-month average of 68, according to Track Data.
WFMI puts are more expensive than calls because WFMI is difficult to borrow.
Posted at 3:08 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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