Options Update: IBM February Volatility Low at 21; Shares Near Record High

Posted Dec 26th 2009 8:40AM by Paul Foster
Filed under: Hershey Co (HSY), Options, Kraft Foods'A' (KFT)

IBM (IBM) closed at $130.57. IBM is expected to report Q4 EPS on Jan. 19. January option implied volatility is at 16, February is at 21, April is at 22; below its 26-week average of 24 according to Track Data, suggesting decreasing price movement.

Cadbury PLC (CBY) closed at $50.81. The European Commission's has a Jan. 6 deadline for reviewing Kraft's (KFT) plan to buy CBY. Cadbury, the world's second largest confectioner, rejected Kraft's buyout bid in November. Hershey (HSY) and Italy's Ferrero have said they are considering rival offers for Cadbury. January call option implied volatility is at 26, puts at 29, March volatility is at 27; verses its 26-week average of 27, according to Track Data.

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

Tags: Cadbury PLC, CBY, Hershey, HSY, IBM, KFT, Kraft, option implied volatility