Dow Jones(NYSE:DJ) volatility collapses on expectations of a deal. Dow Jones is recently up $7.76 to $61.12 on speculation Rupert Murdoch's News Corp(NYSE: NWS) will raise his $60 cash bid made on 5/1/07. Dow Jones controlling shareholders, the Bancroft family, agreed to meet with Murdoch. General Electric Company (NYSE:GE)has been speculated as submitting a stock for stock bid for Dow Jones. GE's stock for stock bid could be attractive to the Bancroft family because of GE's low beta of 0.85 compared to News Corp's beta of 1.54 if Murdoch would add a stock component to his bid. Dow Jones June option implied volatility has collapsed to 45 from 70 according to Track Data, suggesting decreasing risk.
New York Times(NYSE:NYT) implied volatility suggests non-directional Risk. NYT is recently up .71 to $25.82. NYT over all option implied volatility of 24 is near its 26-week average according to Track Data, suggesting non-directional price risk.
Option volume leaders today are: Dendreon (NASDAQ-DNDN), Apple, Inc.(NASDAQ:AAPL), Dell (NASDAQ:DELL) and Cisco (NASDAQ:CSCO).
Daily Option Update is provided by Stock Options Specialist Paul Foster of theflyonthewall.com.
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