Lorillard (NYSE: LO) closed at $57.35. LO, Altria Group (NYSE: MO), and Reynolds American (NYSE: RAI) have recently announced an increase in cigarette prices. LO April and June option implied volatility of 47 is below its 26-week average of 51, according to Track Data, suggesting decreasing price movement.
RAI closed at $33.54. RAI April and August option implied volatility of 37 near its 26-week average according to Track Data, suggesting non-directional price movement.
MO closed at $16.60. MO April and September option implied volatility of 35 is below its 26-week average of 40, according to Track Data, suggesting decreasing price movement.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.
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