Washington Mutual (NYSE: WM) is recently trading at $15.50 in pre-open trading, above its close of $14.16. CNBC reported JPM in talks to buy WM. WM shares have sold off from a price of $44 in May on consumer and small business economic concerns.
WM will report EPS on January 17th. WM January 15 straddle is priced at $2.65. WM overall option implied volatility of 95 is above its 26-week average of 52 according to Track Data, suggesting larger risk.
JPMorgan Chase (NYSE: JPM) closed at $41.31. JPM will report EPS on January 16th. JPM January straddle is priced at $3.25. JPM February option implied volatility of 45 is above its 26-week average of 32 according to Track Data, suggesting larger risk.
Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
Retailers can't wait for Black Friday, open Thursday
Tiffany's serves up solid quarterly earnings
Cramer on BloggingStocks: This bullish retail story looks like a good fit 
