Options Update: Petroleo Brasiliero and Expedia Rise

Posted Sep 3rd 2010 5:30PM by Paul Foster
Filed under: Expedia Inc (EXPE), Petroleo Brasileiro (PBR)

Petroleo Brasiliero (PBR) closed up $1.49 to $37.48. PBR aims to raise $64 billion to fund PBR's plans to develop offshore oil fields. Crude oil futures are recently down 1.41% to $73.96 a barrel according to Bloomberg. PBR call option volume of 31K contracts compared to put volume of 33K contracts. September put option implied volatility is at 30, October is at 36, January is at 40 versus its 26-week average of 35, according to Track Data, suggesting larger price movement.

Expedia, Inc. (EXPE) closed at $25.43. EXPE shares have recently rallied; likely due to the news Google, Inc. (GOOG) proposed acquisition of ITA may face a lengthy review process by the U.S. Department of Justice. October put option implied volatility is at 41, January is at 45: versus its 26-week average of 40 according to Track Data, suggesting larger January price movement.

Options Update is by Stock Specialist Paul Foster of theflyonthewall.com.

Tags: expedia, GOOG, inthenews, oil, options, PBR, Petroleo Brasileiro