Options Update: Technology companies' volatility elevated


Motorola (NYSE: MOT) closed at $4.66. On February 3 MOT is scheduled to report earnings, provide a financial outlook and discuss its cash position. MOT preannounced EPS on January 14. MOT February 5 straddle is priced at 79c. February option implied volatility is at 78; March is at 71; above its 26-week average of 67, according to Track Data, suggesting larger price movement.

Hitachi Ltd (NYSE: HIT) closed at $33.95. HIT forecast a record $7.8 billion annual loss and says it may cut as many as 7,000 jobs. HIT March option implied volatility of 56 is above its 26-week average of 52, according to Track Data, suggesting larger price movement.


ScanDisk (NASDAQ: SNDK) closed at $12.19. SNDK and Toshiba signed an agreement to restructure their flash manufacturing joint venture operating at the 300-mm Fab 3 and Fab 4. SNDK is scheduled to report Q4 EPS on February 2. February option implied volatility is at 104; March is at 95; near its 26-week average, according to Track Data, suggesting non-directional price movements.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
Symbol Lookup
IndexesChangePrice
DJIA-89.2312,801.23
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S&P 500-9.311,342.64

Last updated: February 13, 2012: 03:05 AM

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