Option update 10-23-07: Apple volatility collapses, Humana up

Posted Oct 23rd 2007 11:42AM by Paul Foster
Filed under: Apple Inc (AAPL), Aetna Inc (AET), Options

Apple (NASDAQ: AAPL) is recently up $11.64 to $186. American Technology Research says, "Strong quarter driven by Macs; Raising estimates and price target." AAPL November option implied volatility of 38 is below a level of 51 from yesterday and its 26-week average of 43 according to Track Data, suggesting decreasing price risk.

Humana (NYSE: HUM), a health benefits company, is recently up $1.47 to $76.16 on unconfirmed Aetna (NYSE: AET) buyout chatter. HUM is expected to report EPS on 10/29. HUM call option volume of 3,249 contracts compares to put volume of 126 contracts. HUM October option implied volatility of 37 is above its 26-week average of 31 according to Track Data, suggesting traders are positioning themselves for a high share price.

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

Tags: American Technology Research, AmericanTechnologyResearch, buyout chatter, BuyoutChatter, health benefits company, HealthBenefitsCompany, Humana, Macs CPU's digital phones music, MacsCpu'sDigitalPhonesMusic, option implied volatility, OptionImpliedVolatility, Steve Jobs iPod iPhone iMac Leopard, SteveJobsIpodIphoneImacLeopard