Options Update: Wyeth volatility at 46 into report Pfizer in talks to acquire WYE

Posted Jan 23rd 2009 10:30AM by Paul Foster
Filed under: Pfizer (PFE), Options

Wyeth (NYSE: WYE) is recently trading at $42.06, above its close of $38.83. Pfizer (NYSE-PFE) is in talks to acquire WYE in a deal valued at $60B, reported the WSJ. WYE is expected to report Q4 EPS on January 29. WYE February and March option implied volatility of 46 is near its 26-week average of 43, according to Track Data, suggesting non-directional price movement.

PFE is recently trading at $16.77, below its close of $17.21. PFE is expected to report Q4 EPS on January 28. PFE February volatility of 37 is near its 26-week average according to Track Data, suggesting non-directional price movement.

Crucell NV (NASDAQ: CRXL), a biopharmaceutical company, and WYE confirmed on January 7 the two firms are in discussion to combine. CRXL closed at $22.39 and was recently trading this morning at $19.91. CRXL February option implied volatility of 70 is above its 26 week average of 63, according to Track Data, suggesting larger price movement.

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

Tags: Crucell NV, CrucellNv, option implied volatility, OptionImpliedVolatility, Pfizer, Wyeth