Options Update: Auto makers' volatility at record highs on lower shares prices

Ford (NYSE: F) closed at $2.13 Monday. F is expected to report Q3 EPS on November 7. Deutsche Bank says: "there is no recent history of a decline of such ferocity makes us cautious about proclaiming a bottom." F overall option implied volatility of 155 is above its 26-week average of 100 according to Track Data, suggesting larger price movement.

General Motors (NYSE: GM) closed at $5.65 Monday. GM is expected to report Q3 EPS on November 7. Deutsche Bank says: "There are relatively few near term catalysts that could help stimulate an auto demand recovery." GM November 5 straddle is priced at $2.05, December is at $3.25. GM December option implied volatility of 192 is above its 26-week average of 102 according to Track Data, suggesting larger price fluctuations.

Daimler AG (NYSE: DAI) closed at $33.92 Monday. DAI December option implied volatility of 89 is above its 26-week average of 42 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: 06:14 AM

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