Options update: Sun Micro volatility decreases, shares up on hopes for deal closure

Posted Dec 15th 2009 8:00AM by Paul Foster
Filed under: Chesapeake Energy (CHK), Sun Microsystems (JAVA), Oracle Corp (ORCL), Options

Sun Microsystems (JAVA) rallied to close at $9.28 on hopes for a deal closure with Oracle's (ORCL) proposed purchase of Sun Microsystems. ORCL announced in April it was paying $9.50 in cash per share for JAVA. January put option implied volatility is at 28 below a level of 41 from a month ago, according to Track Data, suggesting decreasing price movement.

Chesapeake Energy (CHK) closed at $24.37. Natural gas is recently up 1.46% to 5.41, according to Bloomberg. January option implied volatility is at 42; April is at 46, below its 26-week average of 49, according to Track Data, suggesting decreasing price movement.

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

Tags: inthenews, option implied volatility, OptionImpliedVolatility