Option Update: Pilgrim's Pride volatility at 189 into credit compliance warning


Pilgrim's Pride (NYSE: PPC) informed its lenders it does not expect to be in compliance with its fixed-charge coverage ratio covenant under its principle credit facilities. PPC is the U.S.'s second largest chicken processor. PPC November option implied volatility of 189 is above its 26-week average of 56 according to Track Data, suggesting larger price fluctuations.

Transmeta (NASDAQ: TMTA) said it has begun a process to seek a potential sale of the company. TMTA, a designer of chip technology, closed at $13.50. TMTA over all option implied volatility of 66 is above its 26-week average of 54 according to Track Data, suggesting larger price movement.

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

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Last updated: February 13, 2012: 03:58 AM

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