Option Update: Microsoft volatility elevated after withdrawing YHOO offer

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Microsoft (NASDAQ: MSFT) is recently trading at $31.02 in pre-open trading, above its close of $29.24.

MSFT announced it has withdrawn its proposal to acquire Yahoo (NASDAQ: YHOO).

Deutsche Bank says: "We reiterate our Buy and $36 PT on MSFT."

MSFT May option implied volatility of 38 is above its 26-week average of 30 according to Track Data, suggesting larger price uncertainty.

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

Symbol Lookup
IndexesChangePrice
DJIA-43.8410,014.80
NASDAQ-12.082,138.79
S&P 500-5.371,065.15

Last updated: February 10, 2010: 11:28 AM

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