Option update 5-29-07: GTRC up on deal speculation

Posted May 29th 2007 2:23PM by Paul Foster
Filed under: Wal-Mart (WMT), Verizon Communications (VZ), QUALCOMM Inc (QCOM), Options, ValueClick Inc (VCLK)

Guitar Center (NASDAQ: GTRC) implied volatility flat as GTRC rallies on Speculation.

GTRC, a retailer of guitars, amplifiers, percussions instruments, keyboards, and pro-audio and recording equipment, is recently up $3.75 to $51.26. Chatter is circulating GTRC has hired an investment bank to explore strategic alternatives. GTRC has a market cap of $1.4 billion with long-term debt of $1 million. GTRC June option implied volatility of 33 is near its 26-week average according to Track Data, suggesting non-directional risk.

ValueClick (NASDAQ-VCLK) volatility up on expectations of continued consolidation in sector.

VCLK, an online marketing services company, is recently up 0.44 to $33.12. Investors have been speculating VCLK could be acquired due to the recent M&A deals in the sector. VCLK June option implied volatility of 61 is above its 26-week average of 41 according to Track Data, suggesting larger risks.

Option volume leaders today are: Qualcomm (NASDAQ: QCOM), Verizon (NYSE: VZ) and Wal-Mart (NYSE: WMT).

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

Tags: consolidation, option implied volatility, OptionImpliedVolatility, qcom, Speculation, vclk, vz, wmt