Blogging Options: CBOE Mid-day Update

Stock Mover’s

Sunoco (SUN) is recently up 4.7% after announcing plans to exit its refining business and has begun a process to sell its refineries. October and November call option implied volatility of 46 is above its 26-week average of 35; suggesting larger price movement.

Temple-Inland (TIN) is recently up 25% to $30.80 on news that International Paper (IP) agreed to buy the company for $32 a share. October and November call option implied volatility of 21 is below its 26-week average of 42, suggesting less risk into the deals closure.

Shaw Group (SHAW) is recently up 5.8% to $23.09 after announcing that Toshiba (TOSBF) will buy back its 20% Westinghouse Electric stake for about $1.6B. SHAW September call option implied volatility is at 64, October is at 51; above its 26-week average of 41.