OPTIONS- Sunrise Technol. implied vols stay high
July 19, 1999 03:06 PM
CHICAGO, July 19 (Reuters) - Implied volatility stayed high Monday although turnover slowed slightly from Friday's brisk pace in options on Sunrise Technologies International Inc. SNRS .
Implied volatility for the August 15s stood at about 176 percent and at about 160 percent for the 17.5s, compared to the more-usual 110-percent area.
Market makers noted buyers of the August expiration in the fairly new option, which was listed in early April.
"It's only been trading for a couple months," said Stanton Todd, a market maker in the option at the Chicago Board Options Exchange. "It opened (last April) at 110 percent and it's basically gone up" from there.
Volume, which totaled about 10,000 contracts on Friday, was roughly 7,350 by 1345 CDT/1845 GMT Monday, still well above the more-typical 3,000-contract daily total.
Traders said the recent increase in activity occurred as they waited for the July 22 review by the U.S. Food and Drug Administration of Sunrise's premarket approval application for its laser treatment for farsightedness, a technology that does not touch or cut the cornea.
"Basically the action in August (options) is stemming from the FDA" review expected on Thursday, Stanton added.
In the August 15 calls, which rose 1/8 to 4-1/8 at the CBOE, interexchange volume totaled about 470 contracts on open interest of 3,751. In the August 17.5 calls, which were flat at 3, volume was 800 on open interest of 1,296.
In the August 12.5 puts, which lost 1/8 to 1-1/2, combined volume stood at about 745 contracts on open interest of 2,965, and the August 15 puts, which dipped 1/8 to 2-7/16, turnover was about 695 on open interest of 1,764.
Shares of the California-based Sunrise, which develops, makes and sells ophthalmological laser systems, rose 10/16 to 17-3/16 on Nasdaq market volume of 2.4 million.
((Laura Jacobs, Chicago Derivatives Desk(312)408-8750 chicago.derivatives.newsroom@reuters.com)) REUTERS
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