Chicago Bridge & Iron (NYSE: CBI), was trading at $31.39 in after market trading last night, below its close of $36.39 Tuesday.
CBI lowered guidance for 2008 and will take a Q2 pretax charge of $317 million on cost over runs associated with two LNG projects in the UK. Goldman Sachs says: "Lowering rating to Neutral on nagging execution risk."
CBI August option implied volatility of 66 is above its 26-week average of 53 according to Track Data, suggesting larger price movement.
Financial Select Sector-XLF overall volatility at 51; 26-week average is 36
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
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