Option Update: General Electric volatility elevated as Merrill lowers rating

Posted Sep 23rd 2008 9:13AM by Paul Foster
Filed under: Analyst Upgrades and Downgrades, General Electric (GE), Chesapeake Energy (CHK), Options

General Electric (NYSE: GE) is recently trading at $25.61 in pre-open trading, below its close of $26.15. Merrill Lynch lowered its rating on GE to Neutral from Buy. GE October option implied volatility of 61 is above its 26-week average of 30 according to Track Data, suggesting larger price movement.

Chesapeake Energy (NYSE: CHK) closed at $40.89 Monday. CHK announced plans to temporarily reduce its 2008-10 capital expenditures and reduce its rig count by 17. CHK will host an analyst meeting on October 15. Natural Gas futures are recently up 0.17% to $7.671 according to Bloomberg. CHK October option implied volatility of 66 is above its 26-week average of 52 according to Track Data, suggesting larger price movement.

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

Tags: chesapeake, chk, ge, general electric, GeneralElectric, inthenews, option implied volatility, OptionImpliedVolatility