Mattel (NYSE: MAT) volatility Elevated at 39 into Voluntary recall. MAT announced the voluntary recall of 18 million products. BMO Capital Markets says, "We believe this recall will adversely affect consumer behavior, resulting in lower sales for the line. MAT closed at $23. MAT September option implied volatility of 36 is above its 26-week average of 26 according to Track Data, suggesting larger risk.
Moody's (NYSE: MCO) September implied volatility Elevated at 58. MCO, a provider of credit ratings, research and analysis covering fixed income securities closed at $49.98. The Wall Street Journal Online carried the headline "How rating firms' calls fueled Subprime Mess. Benign view of loans helped create bonds, led to more Lending." MCO September option implied volatility of 58 is above its 26-week average of 39 according to Track Data, suggesting larger fluctuations.
McGraw-Hill (NYSE: MHP) implied volatility Elevated at 39. MHP, a global information service provider, closed at $51.92. MHP's division Standard & Poor's is a provider of market intelligence, including independent credit ratings, risk evaluation & data. The WSJ says, "In 2000, Standard & Poor's made a decision about an arcane corner of the mortgage market. It said a type of mortgage that involves a "piggyback," where borrowers simultaneously take out a second loan for the down payment, was no more likely to default than a standard mortgage." The WSJ goes on to say, "Six years later, S&P reversed its view of loans with piggybacks." MHP September option implied volatility of 39 is above its 26-week average of 26 according to Track Data, suggesting larger risk.
Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.
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