Option update 5-8-07: Urban Outfitters volatility increases before earnings


Countrywide Financial Corp. (NYSE: CFC) implied volatility Elevated as CFC share price retraces.

  • CFC, the largest U.S. home mortgage lender, is recently up $1.44 to $39.92 on renewed buyout chatter.
  • CFC May option implied volatility of 48 & June at 41 is above its 26-week average of 34 according to Track Data, suggesting larger price risks.

Urban Outfitters Inc. (NASDAQ: URBN) implied volatility suggests increased risk into EPS.

  • URBN, a lifestyle merchandising company, announced 1Q same store sales fell 2%.
  • URBN will report EPS on 5/10. BUCK has an accumulate rating on URBN with a $31 price target.
  • URBN May option implied volatility is at 53, June is at 45; above its 26-week average of 42 according to Track Data, suggesting larger risk.

Option volume leaders today are: Dendreon Corp. (NASDAQ: DNDN), AK Steel Holding Corp. (NYSE: AKS), Motorola Inc. (NYSE: MOT) and Cisco Systems Inc. (NYSE: CSCO).

Daily Option Update is provided by Stock Options Specialist Paul Foster of theflyonthewall.com.

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Last updated: May 22, 2012: 03:12 AM

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