Option Update: Wachovia and National City volatility elevated

Posted Sep 29th 2008 8:30AM by Paul Foster
Filed under: JPMorgan Chase (JPM), Wachovia Corp (WB), Washington Mutual (WM), Options

Wachovia (NYSE: WB) is recently trading at $4.25 in pre-open trading, below its close of $10. WB October 10 straddle was priced at $7.20 on September 26, November 10 is at $8.40 according to Track Data, suggesting larger price movement.

National City (N&SE: NCC) is recently trading at $3.64 in pre-open trading, below its close of $3.71. NCC's share price declined 25% after JP Morgan (NYSE: JPM) purchased Washington Mutual (NYSE: WM) banking assets. BMO Capital says: "NCC is not in the same situation as WM was." NCC October 4 straddle is priced at $2.45; November 4 straddle is priced at $2.75; according to Track Data, suggesting large price fluctuations.

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

Tags: inthenews, jpm, National City, NationalCity, ncc, option implied volatility, OptionImpliedVolatility, wb, wm