Option Update: MSFT, BHP volatility spikes on market weakness

Posted Sep 30th 2008 8:29AM by Paul Foster
Filed under: Microsoft (MSFT), Options, BHP Billiton Ltd ADR (BHP)

Microsoft (NASDAQ: MSFT) closed at $25.01. MSFT announced on September 22 its board of directors approved a new share repurchase program authorizing up to additional $40 billion in share repurchases with an expiration of September 30, 2013. MSFT is scheduled to report Q1 EPS on October 23. MSFT October option implied volatility is at 55, November is at 51; above its 26-week average of 32 according to Track Data, suggesting larger price movement.

BHP Billiton (NASDAQ: BHP), the world's largest diversified resources company, closed at $50.50. BHP October option implied volatility of 97 is above its 26-week average of 50 according to Track Data, suggesting larger price movement.

Volatility Index S&P 500 Options-VIX at 46.72; 10-day moving average is 35.07.

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

Tags: bhp, msft, option implied volatility, OptionImpliedVolatility, vix, Volatility Index SP 500 Options, VolatilityIndexSp500Options