Options Update: Rohm and Haas volatility elevated at 146 into canceled financing

Posted Dec 29th 2008 11:30AM by Paul Foster
Filed under: Dow Chemical (DOW), Options

Rohm and Haas (NYSE-ROH) is recently trading at $48.66 in pre-open trading, below its close of $63.56. ROH, the acquisition target of Dow Chemical (NYSE-DOW), lost access to $9 billion of Kuwait financing. January option implied volatility of 146 is above its 26-week average of 29, according to Track Data, suggesting larger price movement.

DOW is recently trading at $18.00 in pre-open trading, below its close of $18.92. Smith Barney says, "DOW should be looking to protect its shareholders by cutting the ROH deal at a lower price or walking away from the deal by paying a break up fee." DOW January option implied volatility of 59 is above its 26-week average of 49, according to Track Data, suggesting larger price movement.

Volatility Index S&P 500 Options-VIX at 43.38; 10-day moving average is 48.26.

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

Tags: DOW, inthenews, option implied volatility, OptionImpliedVolatility, ROH, Volatility Index SP 500 Options, VolatilityIndexSp500Options