Alltel (NYSE: AT) volatility is Elevated as arbitrageurs wait for strategic alternatives.
- AT, a customer focused communications company with operations in 36 states, has a market cap of $21 billion with long term debt of $2.7 billion.
- AT is reviewing its strategic alternatives. Robert Baird says: "We believe that in an acquisition scenario that AT could fetch closer to $70 per share. However, aside from M&A potential, we believe the shares are currently trading near fair value."
- AT May option implied volatility of 28 is above its 26-week average of 22 according to Track Data, suggesting larger near-term price risks.
International Securities Exchange (NYSE: ISE) volatility collapses. The company is in advanced talks.
- ISE is recently up $19.08 to $64.81.
- The Deutsche Boerse confirmed it is in talks to buy ISE. The ISE confirmed it is in advanced talks to sell itself.
- ISE May at the money option implied volatility of 18 is below a level of 34 from last week and below its 26-week average of 41 according to Track Data, suggesting decreasing risk.
Option volume leaders today are: Apple Inc. (NASDAQ: AAPL), Amazon (NASDAQ: AMZN) and Dendreon (NASDAQ: DNDN).
Daily Option Update is provided by Stock Options Specialist Paul Foster of theflyonthewall.com.
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