Option update 5-11-07: RACK implied volatility not confirming DELL speculation

Posted May 11th 2007 12:55PM by Paul Foster
Filed under: Advanced Micro Dev (AMD), Amgen Inc (AMGN), Options

Rackable Systems (NASDAQ: RACK) implied volatility not confirming Dell (NASDAQ: DELL) speculation. RACK, a provider of servers and storage products, is recently up .54 to $12.49. Market speculation is circulating that Dell is interested in RACK. RACK June option implied volatility of 51 is below its 26-week average of 57 according to Track Data, suggesting decreasing price risk.

Lyondell Petro (NYSE: LYO) volatility stays Elevated as Occidental Petroleum (NYSE: OXY) says it will sell LYO Holdings. LYO a global manufacture of chemicals, plastics and fuel products is recently up $2.91 to $36.00. OXY announced plans to sell all of its 20,990,070 holdings in LYO. LYO June option implied volatility of 34 is above its 26-week average of 31 according to Track Data, suggesting larger risk.

Option volume leaders today are: Dendreon (NASDAQ: DNDN), Advanced Micro Devices (NYSE: AMD), Amgen Inc. (NADSAQ: AMGN) and Lyondell Petro (NYSE: LYO).

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

Tags: Lyondell Petro, LyondellPetro, Market speculation, MarketSpeculation, option implied volatility, OptionImpliedVolatility, Stock Options, StockOptions