Options Update: Volatility decreases as shares rally

Posted Jan 29th 2009 8:45AM by Paul Foster
Filed under: Options, Honeywell Intl (HON)

Honeywell (NYSE: HON) closed at $34.71. HON is scheduled to report Q4 EPS on January 30. HON January option implied volatility of 41 is below its 26-week average of 49, according to Track Data, suggesting decreasing price movement.

Nvidia (NASDAQ: NVDA) closed at $8.79. NVDA is scheduled to report Q4 EPS on February 10. NVDA is scheduled to introduce new notebook chips in late spring. NVDA February option implied volatility is at 74; June is at 69; near its 26-week average according to Track Data, suggesting non-directional price movement.

UnitedHealth (NYSE: UNH) closed at $29.99. Goldman Sachs has a Buy rating on UNH. UNH February option implied volatility of 48 is below its 26-week average of 58, according to Track Data, suggesting decreasing price risk.

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

Tags: hon, Honeywell, nvda, Nvidia, option implied volatility, OptionImpliedVolatility, unh, UnitedHealth