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Macy’s, DR Horton, Pfizer shares tick up during the first hour of trading as implied volatility in the market drops.
Karla hosts and produces Options News and Mad About Options, and writes the Sidewinder report. Karla graduated from Colgate University, where she majored in English and Film and Media Studies.
M shares are up 15 cents to $17.26 this morning without any news out of the company. The February 20 calls have traded 7,800 times for around 80 cents versus open interest of 6,500 contracts. It looks like buying action, as the calls were up higher than the delta would suggest at 9:45 a.m. EST. The December 17 straddle is trading at $1.85, compared to Friday’s straddle that closed at $1.90.
DHI shares have rallied 45 cents to $19.82 this morning. The company announced worse than expected earnings on Friday and missed estimates by 43 cents. Some firms remain bullish, however, as JPM Securities maintained an outperform rating, and Citigroup upgraded the firm to hold from sell. We saw a call seller looking to recoup some losses after the company’s earnings announcement. Implied volatility has also come in on this name to approximately 12%.
PFE shares are currently up 38 cents to $18.74, and we saw a buyer of the December 19 straddle, paying 97 cents for 3,000 straddles. We also saw the December 16 calls hit the tape around 20,000 times. The December 19 straddle is trading at 98 cents, compared to the December 18 straddle that closed Friday at $1.11, as implied volatility continues to come in.
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