REUTERS 04/06 13:19 U.S. Options - Advanced Micro Devices vols stay high
CHICAGO, April 6 (Reuters) - Implied volatility in options for computer chip maker
Advanced Micro Devices Inc. <AMD.N> remained high but options volume died down
on Thursday as the stock spiked to a new 52-week high.
New York Stock Exchange shares of Advanced Micro Devices rose 3-3/8 to 71-3/8,
off its new high of 74, on turnover of about 3.7 million shares by midday Thursday.
The stock, which has been moving upward, also hit a new 52-week high on
Wednesday at 69 before closing at 68, after the company said it expects first-quarter
sales to top $1 billion.
Implied volatility for the April 70 calls stood at around 98 to 100 percent, unchanged
from Wednesday's levels, said Tom Shanahan, designated primary market maker
with KFT DPM at the Chicago Board Options Exchange.
The vols have been 98 to 100 (percent) during the last couple of days," he said.
"Yesterday afternoon, one large institutional customer sold about 5,000 to 6,000
April 65 puts when the stock was around 67 or 68."
One of the busiest options was the April 70 calls on the Pacific Exchange, which
rose 1-7/8 to 6-5/8 on Pacific Exchange turnover of 1,056 contracts and open interest
of 4,115 at 11:49 a.m. CDT (1649 GMT).
Although options volume was "surprisingly light" on Thursday, it has been busy over
the past few sessions, the market maker said.
On Wednesday, 27,454 contracts traded, of which 16,752 were calls and 10,702
were puts, up from its recent average daily volume of 11,536 contracts.
((Doris Frankel, Chicago Derivatives Desk(312)408-8750
chicago.derivatives.newsroom@reuters.com))
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