The Procter & Gamble Company (NYSE: PG) put volume and volatility spike suggested downside hedging. PG was recently down $2.15 to $70.32. PG is expected to report second quarter (Q2) earnings per share (EPS) on January 31. PG call option volume of 26,878 contracts compared to put volume of 40,188 contracts. PG February option implied volatility of 31 is above its 26-week average of 20.
Macy's, Inc. (NYSE: M) volatility was elevated at 70 as shares hit a near four-year low. M was recently down $1.43 to $21.14. BMO Capital Markets said, "The stock is trading at 9.3x our revised 2008 estimate, which is below its historical range." M February option implied volatility of 70 is above its 26-week average of 46 according to Track Data, suggesting larger risk.
Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
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