U.S. Options-Advanced Micro vols up ahead of earnings
CHICAGO, April 10 (Reuters) - Implied volatility in options
for computer chip maker Advanced Micro Devices Inc.
stayed high on Monday as the stock spiked to a new 52-week high
ahead of first quarter earnings expected this Wednesday.
New York Stock Exchange shares of Advanced Micro Devices
were up Monday afternoon 1-1/16 to 75-7/16, off its new high of
79-1/8.
Implied volatility for the active April 70 puts stood at
around 98 to 100 percent, up from the mid-90 percent level last
Monday but mostly unchanged from Friday, said Dan Koutris,
designated primary market maker for KFT DPM at the Chicago
Board Options Exchange.
"I think the general market volatility is higher and people
are expecting at least 52 cents a share from this company," he
said.
Advanced Micro's earnings are expected on April 12.
The revised earnings consensus for Advanced Micro Devices'
first quarter is 52 cents a share according to a survey of
analysts by First Call/Thomson Financial, which compiles
brokerage estimates.
In the year-ago quarter, the company had a loss of 81 cents
per share.
"There is widespread interest in the chip sector," the
market maker said.
He cited brisk put institutional selling, especially in the
April 70 strike price, early Monday before the stock ran up.
The busiest option was the April 70 puts on the Pacific
Exchange, which slipped 3/4 to 2-3/4 on interexchange turnover
of about 11,617 contracts and open interest of 1,333 at 1:30
p.m. CDT (1830 GMT).
((Doris Frankel, Chicago Derivatives Desk(312)408-8750
chicago.derivatives.newsroom@reuters.com)) |
