Anyone else watching FNV? More rumors brewing...I picked up a few calls yesterday, already long some shares previously.
U.S. Options-FINOVA vols high, calls busy
19 Sep 2000 11:02 GMT (Reuters)
CHICAGO, Sept 19 (Reuters) - Implied volatility in options of financial services company FINOVA Group Inc. (FNV) remained high Tuesday on active call buying amid the resurfacing of takeover rumours.
FINOVA stock, a Scottsdale, Ariz.,-based company that lends primarily to mid-size businesses, was up 3/16 to $7 on New York Stock Exchange turnover of about 349,900 shares around midday Tuesday.
The company Tuesday reiterated its statements in May that it hired Credit Suisse First Boston to help evaluate the company's strategy.
"We announced in May that we had engaged Credit Suisse First Boston to help assist us in a review of strategic alternatives that would possibly include a sale of the company or an equity infusion," a company spokesman said Tuesday.
"The process is ongoing and we continue in our discussions with parties regarding both scenarios," the spokesman added.
The implied volatility for October 7.5 strikes was around 130 percent versus a recent range of 90 to 140 percent, a floor source on the American Stock Exchange said.
He noted mostly call buying prompted by the resurfacing of takeover speculation. The Amex source had no other details.
The average implied volatility for the last month in the stock was about 109 percent, using Track Data figures.
The stock's historic one-month volatility is 77 percent.
About 622 calls and 91 puts changed hands across the Amex on Tuesday, the sole exchange where the options are listed.
On Monday, 3,241 contracts traded, of which 2,591 were calls and 650 were puts, up from its recent average daily volume of 1,162 contracts, according to McMillan Analysis Corp. |
