CNXT Option Volume Increases:
Tuesday December 5, 2:05 pm Eastern Time
U.S. Options-Conexant vols up as stock rises
CHICAGO, Dec 5 (Reuters) - Implied volatility in options of modem chip maker Conexant Systems Inc. (NasdaqNM:CNXT - news) rose on call buying as the stock gained ground on Tuesday.
Shares of Newport Beach, California-based Conexant were up $2-3/4 to $25-3/8 on Nasdaq volume of about 5.3 million shares Tuesday afternoon.
``I would anticipate that people are buying calls because they are going to spin off a division,'' probably in January, said Dan Koutris, designated primary market maker with KFT DPM, at the Chicago Board Options Exchange.
Conexant Spinco Inc., a wholly owned subsidiary of Conexant Systems Inc., filed on Nov. 13 with regulators to make its stock public.
The parent company Conexant was seeking to raise as much as $100 million from the initial public offering, it said in a preliminary prospectus filed with the Securities and Exchange Commission.
It did not disclose how many shares of Class A common stock it planned to issue or the price per share. Those details are expected in future filings.
Conexant Spinco provides semiconductor system solutions and products for segments of the broadband communications market.
Implied volatility for the December 25 calls stood at about 120 percent, up from 115 percent on Monday, Koutris said.
Options volume died down as about 2,088 calls and 209 puts changed hands combined across the four U.S. options exchanges on Tuesday versus 4,513 contracts traded on Monday, according to Track Data. |
