Countrywide Financial (NYSE: CFC) is recently up 14 cents to $6.28.
CFC has been recently subject to unconfirmed chatter Bill Miller of Legg Mason Value Trust and other major CFC shareholders want Bank of America (NYSE: BAC) to increase its offer for CFC.
BAC announced on Jan. 11, 2008 it will pay CFC shareholders 0.1822 per share of BAC for each share they own. The BAC buyout premium spread is wide at 22% ($7.46).
CFC May option implied volatility of 74 is near its 12-week average of 77 according to Track Data, suggesting non-directional risk.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
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