Options Update: Comcast volatility low into NBCU deal

Posted Dec 3rd 2009 8:00AM by Paul Foster
Filed under: General Electric (GE), Comcast Cl'A' (CMCSA), Barrick Gold (ABX), Options

Comcast (CMCSA) agreed to take a majority-ownership of NBC Universal from General Electric (GE). Comcast announced a 40% dividend increase and said its will complete its $3.6 billion stock-buyback effort during the next three years. CMCSA overall option implied volatility of 35 is versus its 26-week average of 39, according to Track Data, suggesting decreasing price movement.

Barrick Gold (ABX) closed at $47.93. Gold is recently up 0.24% to $1215.90 according to Bloomberg. Barrick Gold announced on December 1 that it has eliminated all gold hedges and now has full leverage to the gold price on the industry's largest gold production and reserves. December and January option implied volatility of 43 is near its 26-week average of 44 according to Track Data, suggesting non-directional price movement.

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

Tags: abx, Barrick Gold, BarrickGold, cmcsa, ge, inthenews, option implied volatility, OptionImpliedVolatility