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inVentiv Health Tops Bullish Volatility Skews, Southwest Gas Tops Bearish Skews

Option traders are pushing up call option prices in the Management Services industry and are pushing up put option prices in the Gas Utilities industry today.

Any time the volatility skews above 1.00, it is an indication that calls are more expensive than puts. Typically, when calls are more expensive than puts, it means the demand for calls is greater than the demand for puts because investors believe the stock is going to rise in the future and they want to take advantage of that movement by buying calls.

The opposite is also true. Any time a volatility skews below 1.00, it is an indication that puts are more expensive than calls.

Bullish Volatility Skews

inVentiv Health, Inc. (VTIV) -- part of the Management Services industry---came in at the top with a volatility skew of 1.23. This shouldn't be a surprise as VTIV is up 2.32 percent for the past month.

Continue reading inVentiv Health Tops Bullish Volatility Skews, Southwest Gas Tops Bearish Skews

Analyst upgrades: SWX, HITT and REP

MOST NOTEWORTHY: Southwest Gas, Hittite Microwave and Repsol SA were today's noteworthy upgrades:
  • Citigroup upgraded shares of Southwest Gas (NYSE: SWX) to Buy from Hold on valuation, as they believe the company's fundamentals have improved enormously over the last three years.
  • Thomas Weisel upgraded shares of Hittite Microwave (NASDAQ: HITT) to Overweight from Market Weight, as they believe the company is executing on its strategy of increasing new product introductions and growing its global sales efforts. They believe shares are undervalued and maintain a $43 target.
  • Repsol SA (NYSE: REP) was raised to Buy from Hold at Deutsche Bank as they expect good news to flow in 2008.
OTHER UPGRADES:
  • Goldman upgraded CNOOC (NYSE: CEO) to Buy from Neutral and added shares to their Conviction Buy List.
  • Urban Outfitters (NASDAQ: URBN) was raised to Equal Weight from Underweight at Morgan Stanley.
  • Broadpoint raised Ultimate Software (NASDAQ: ULTI) to Buy from Neutral.

Symbol Lookup
IndexesChangePrice
DJIA-89.2312,801.23
NASDAQ-23.352,903.88
S&P 500-9.311,342.64

Last updated: February 10, 2012: 06:18 PM

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