ROFLMAO. This is out at 8:50? Didn't Reuters see the freaking news!!
Thursday June 11, 8:50 pm Eastern Time
U.S. OPTIONS/Immune Response vols surge
CHICAGO, June 11 (Reuters) - Implied volatility on Immune Response Corp. options spiked on Thursday as the stock
rallied amid a broad-based stock market decline.
The company, which held its annual meeting this morning, said it did not know what was driving the stock or options,
adding that it made no important announcements at the meeting.
Yet implied volatility for July at-the-money options rose as high as 130 percent, up sharply from its average of around 75
to 80 percent.
The underlying stock advanced 1-15/16 to 13-11/16, even as the Nasdaq shed 1.3 percent.
''It can't sustain these kinds of volatility levels for long,'' said Jon Najarian, president of Mercury Trading.
He noted sizable open interest in the soon-to-expire June 12-1/2 calls, which drew the most volume today, registering
more than 950 contracts.
''It could just be a short squeeze of those who sold those options last week, and not just speculators betting on a price
rise,'' Najarian said.
The June 15 calls also saw good volume, with more than 500 contracts changing hands.
A market maker in the options noted good two-way business. ''We've seen buy writers, call sellers -- it has been
spread pretty evenly,'' he said.
Implied volatility and volume had risen steadily earlier this week as an independent group, the Data Safety Monitoring
Board, told Immune Response that the company should continue Phase III trials of its HIV drug.
The three-year trials for the drug, the furthest along in its product pipeline, were scheduled to be completed in March
1999, said company spokeswoman Deb Altman.
In other trading, implied volatility on Triton Oil (OIL - news) options advanced up to around 60 percent from an average
of about 44 percent over the past few months as the stock, pressured by the decline in crude oil prices, lost 1-9/16 to
close at 35-1/2.
The S&P 100 tumbled 7.97 points to 531.83 as worries about turmoil in Asia deepened.
Michael Schwartz, a managing director of CIBC Oppenheimer, said unwinding of options positions ahead of the
expiration of June contracts next week exacerbated the decline.
"That probably will continue into next week," he said.
More Quotes
and News:
Immune Response Corp (Nasdaq:IMNR - news)
Triton Energy Corp (NYSE:OIL - news)
Related News Categories: options, US Market News
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