U.S. Options -Analog Devices vols jump as stock up
CHICAGO, April 17 (Reuters) - Implied volatility in options of computer chip maker Analogue Devices Inc. (NYSE:ADI - news) popped up amid thin options turnover as the stock rose on Monday.
Shares of Analogue Devices, the maker of computer chips that transform sound and video into digital data, were up 1-1/4 to 59-3/4, off its session high of 61-5/8, on New York Stock Exchange volume of about 2.5 million shares Monday afternoon.
Implied volatility for the April 60 calls stood at around 103 percent to 104 percent, up 20 percent in value from last week, said an options trader at the Philadelphia Stock Exchange.
``Friday's downturn (in U.S. stocks) set us over the top into the 100s,' he said, commenting on the rise in implied volatility due to the free fall in the U.S. stock markets last week.
Most of Monday's activity was outright put buying or customers buying calls and selling the stock, the trader added.
``There are no sellers of options out there. That is why they are so high, even out into May and June,' he said.
One of the busiest options was the April 60 call on the Philadelphia Stock Exchange, which slipped 1-1/16 to 2-11/16 on combined exchange volume of about 170 contracts and open interest of 672 at 1:33 p.m. CDT (1833 GMT).
Options volume has died down compared to the busy activity on Friday. ``It's very slow today. Everybody taking a breath before expiration on Thursday,' the trader said.
April individual stock options will expire on Thursday because the markets will be closed Friday.
About 587 calls and 154 puts changed hands across the Philadelphia Stock Exchange, the American Stock Exchange and Chicago Board Options Exchange early Monday afternoon.
On Friday, 6,970 contracts traded, of which 1,556 were calls and 5,414 were puts, up from its recent average daily volume of 2,324 contracts. |
