Option Update: Genentech volatility elevated; shares below Roche's $89 offer

Posted Oct 8th 2008 10:15AM by Paul Foster
Filed under: International Business Machines (IBM), Genentech Inc (DNA), Options

Genentech (NYSE: DNA) closed at $78.19 Tuesday. Roche announced on July 21 the offer to buy the balance of 44% of DNA it does not own for $89 cash. DNA November option implied volatility of 60 is above its 26-week average of 33 according to Track Data, suggesting larger price movement.

IBM (NYSE: IBM) closed at $95.65 Tuesday. IBM is scheduled to report Q3 EPS on October 16. Thomas Weisel lowered its 12-month price target form $143 to $120. IBM October option implied volatility is at 85, November is at 60; above it's above its 26-week average of 30 according to Track Data, suggesting larger price movement.

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

Tags: dba, genentech, ibm, option implied volatility, OptionImpliedVolatility, roche