Options Update: Copper producers' volatility elevated; Copper up 5%

Posted Jan 6th 2009 8:30AM by Paul Foster
Filed under: Options, Freep't McMoRan Copper (FCX)

Southern Peru Copper (NYSE: PCU) closed at $18.12 Monday. Copper is recently up 5.31% to 153.65 according to Bloomberg. PCU February option implied volatility of 83 is above its 26-week average of 78, according to Track Data, suggesting larger price movement.

Teck Cominco (NYSE: TCK), a diversified mining company, closed at $6.82 Monday. TCK January 7.5 straddle is priced at $1.60, December 7.5 straddle is priced at $2.60. TCK February option implied volatility of 121 is above its 26-week average of 110 according to Track Data, suggesting larger share price movement.

Freeport McMoRan (NYSE: FCX) closed at $28.22 Monday. FCX, the world's second-largest copper producer, is expected to report Q4 EPS in mid January. February call option implied volatility is at 87, puts are at 84; near its 26-week average according to Track Data, suggesting non-directional price movement.

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

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