Washington Mutual Inc. (NYSE: WM) implied volatility and put volume Elevated into 4/17 EPS.
WM, a consumer and small business bank with assets of $346 billion, is recently up $0.05 to $39.30. Keefe Bruyette says that WM "has a large share of production in Alt A products and, in our view, has a large share of its balance sheet exposed to mortgage." WM call option volume of 2,552 contracts compares to put volume of 30,969 contracts. WM April option implied volatility is at 43, May is at 27 -- above its 26-week average of 22 according to Track Data, suggesting larger price fluctuations.
Stamps.com Inc. (NASDAQ: STMP) April 20 calls & puts active at Elevated prices into EPS.
STMP, a provider of Internet based postage solutions, is recently trading at $14.44. STMP will announce EPS on April 19th. STMP April 15 calls have traded 79 times on transaction volume of 1,369 contracts above its open interest of 277 contracts. STMP April 15 puts have traded 35 times on transaction volume of 560 contracts, above its open interest of 24 contracts according to Track Data. STMP April 20 straddle is priced at $1.65 above its theoretical value of 0.95 cents, suggesting larger price risk into EPS.
Option volume leaders today are: Dendreon Corp. (NASDAQ: DNDN), Freeport McMoran Copper & Gold Inc. (NYSE: FCX), General Electric Co. (NYSE: GE) and Qualcomm Inc. (NASDAQ: QCOM) .
Daily Option Update is provided by Stock Options Specialist Paul Foster of theflyonthewall.com.
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