Option Update: China Petroleum volatility at 53 as oil trades near $117


China Petroleum & Chemical (NYSE: SNP), an energy and chemical company based in the People's Republic of China, closed at $99.67 Tuesday.

SNP issued a profit warning on April 19 for 1Q08 indicting that net profits will decline more than 50% on a yoy basis. WTI Crude Futures are down 0.26% to $117.76 according to Bloomberg.

SNP overall option implied volatility of 53 is near its 26-week average of 55 according to Track Data, suggesting non-directional price risk.

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

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