Options Update: Career Education Volatility Elevated at 58 on OIG Report

Posted Dec 21st 2009 8:00AM by Paul Foster
Filed under: Walgreen Co (WAG)

Career Education (CECO) closed at $22.30, selling off 19% in late afternoon trading on Dec. 18 after the Office of Inspector General sent out a negative letter concerning the for-profit education group. CECO January option implied volatility is at 58, above a level of 45 from December 16. April volatility is at 55; above its 26-week average of 43 according to Track Data, suggesting traders purchasing options to hedge price movement.

Three stocks with IV rise on Dec. 18: Sun Microsystems (JAVA) +3%, PowerShares DB US Dollar Index Bullish Fund (UUP) +2%, Walgreen's (NYSE-WAG) +2%, according to IVolatility.

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

Tags: Career Education, CareerEducation, option implied volatility, OptionImpliedVolatility, PowerShares DB US Dollar Index Bullish Fund, PowersharesDbUsDollarIndexBullishFund, Sun Microsystems, SunMicrosystems