STD - Calls Trade on Stock Pop

Discussion in 'Options' started by livevol_ophir, Dec 1, 2010.

  1. livevol_ophir

    livevol_ophir ET Sponsor

    STD is trading $10.37, up 7.8% with IV30™ down 3.9%. The <a href="http://www.livevol.com/">LIVEVOL™ Pro Summary</a> is <a href="http://livevol.blogspot.com/2010/12/std.html">in the article</a>.

    <img src="http://www.livevolpro.com/help/images/blog/std_summary.gif" />

    STD is a financial group operating principally in Spain, the United Kingdom, Portugal, other European countries, Brazil and other Latin American countries and the United States, offering a range of financial products.

    The company has traded over 25,165 options on total daily average option volume of just 4,421. Calls have traded on a 3:1 ratio to puts with the action in the Dec 10 and Jan 11 calls. It looks like long interest today. The Stats Tab and Day's biggest trades snapshots are included (<a href="http://livevol.blogspot.com/2010/12/std.html">in the article</a>).

    The Options Tab (<a href="http://livevol.blogspot.com/2010/12/std.html">in the article</a>) illustrates that the calls in Dec are probably opening (compare volume to OI) and also at least some opening in Jan. Note that the Dec vol is up small today while Jan is down 3.7 points opening up a ~6 point vol difference month to month.


    The Skew Tab snap (<a href="http://livevol.blogspot.com/2010/12/std.html">in the article</a>) illustrates the vols by strike by month.

    We can see term structure is pretty normal in that each month further back has lower vol and the skew shape is similar across all months.

    Finally, the Charts Tab (6 months) is <a href="http://livevol.blogspot.com/2010/12/std.html">in the article</a>. The top portion is the stock price, the bottom is the vol (IV30™ - red vs HV20™ - blue vs HV180™ - pink).

    <img src="http://www.livevolpro.com/help/images/blog/std_charts.gif" width="600" />

    We can see the stock has crumbled of late from mid $13 level to mid $9, then up today substantially.

    This is trade analysis, not a recommendation.

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    Details, trades, prices, vols, skews, charts here:
    <a href="http://livevol.blogspot.com/2010/12/std.html">http://livevol.blogspot.com/2010/12/std.html</a>

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