Electronic Arts (NASDA: ERTS) closed at $22.78 Friday. The WSJ says: "Any entertainment company could be interested in EA, given continued growth in videogame sales, the potential for cross fertilization with TV and film storylines and advertiser's interest in buying space in games. DIS makes the most sense." ERTS December option implied volatility of 85 is above its 26-week average of 44 according to Track Data, suggesting larger price fluctuations.
Nvidia (NASDAQ: NVDA) is recently up 16 cents to $8.92 in pre-open trading. NVDA is expected to report Q3 EPS on November 6. Goldman Sachs says: "Buy ahead of 2009 recovery." NVDA November option implied volatility is at 92, December is at 88; above its 26-week average of 65 according to Track Data, suggesting larger price movement.
Baidu (NASDAQ: BIDU), a Chinese language internet search provider, is recently up $4.94 to $210.94. BIDU authorized a $200 million stock buyback. BIDU has a market cap of $7 billion. BIDU November option implied volatility of 89 is above its 26-week average of 64 according to Track Data, suggesting larger price fluctuations.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
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