Options Update: Kraft Foods volatility flat into EPS and Cadbury buyout clarity

Posted Nov 2nd 2009 9:00AM by Paul Foster
Filed under: Options, Kraft Foods'A' (KFT)

Kraft Foods (NYSE: KFT) is expected to report Q3 EPS on November 3. KFT's $16.7 billion bid for Cadbury PLC (NYSE: CBY) was rejected by CBY in September. KFT faces a November 9 deadline set by the U.K. Takeover Panel to make a formal offer for CBY. KFT November option implied volatility is at 25, December is at 24; versus its 26-week average of 25, according to Track Data, suggesting non-directional price movement.

iShares Trust FTSE/Xinhua China 25 Fund (NYSE: FXI) is recently up $1.30 to $43 in pre-open trading. FXI is an index fund that seeks investment results that correspond generally to the price and yield performance of the FTSE/Xinhua China 25 Index. FXI overall option implied volatility of 38 is 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.

Tags: Cadbury PLC, CadburyPlc, iShares Trust FTSEXinhua China 25 Fund, IsharesTrustFtsexinhuaChina25Fund, Kraft Foods, KraftFoods, option implied volatility, OptionImpliedVolatility