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U.S. Options -Amazon.com vols up into announcement
U.S. Options -Amazon.com vols up into announcement
CHICAGO, Nov 8 (Reuters) - Implied volatility popped up
Monday as call buyers entered and pushed up volume in options
on Amazon.com Inc. <AMZN.O>.
Implied vols for the November 80s rose to around 85 percent
Monday afternoon, up some 10 vols points, after the company
said it would make a "significant announcement" Tuesday morning
regarding additions to its product line.
"That's about right. It's up ... the front month is," said
a market maker at the Chicago Board Options Exchange of implied
volatility. "They are buying calls. There are buyers of the
75s, 80s, 85s and 90s."
The market maker repeated market speculation about the
nature of the announcement, which sparked the call buying.
"Maybe they're hooking up with some major retailer or
getting into software retailing," he said. "We don't know."
Volume on Monday also increased.
At 1445 CST/2045 GMT, more than 22,000 calls and 3,100 puts
divided among the November 75, 80, 85 and 90 strikes had
changed hands on the four options exchanges combined.
"It (volume) moves around a lot," the market maker said.
"One day we do 5,000 (contracts) and 20,000 the next."
Busiest were the November 75 calls, which rose 6-11/16 to
7-7/8 on the American Stock Exchange on combined interexchange
volume of roughly 10,850 and open interest of 13,909.
Shares of Amazon.com were up 14 at 78-15/16 on Nasdaq
market volume of 31.3 million.
408-8750
chicago.derivatives.newsroom@reuters.com))
REUTERS
Rtr 16:08 11-08-99 |
