Blogging Options: CBOE Mid-day Update

Stock Mover’s
Synovis Life Technologies (SYNO) is recently up $9.34 to $27.78 on a definitive agreement for Baxter (BAX) to acquire the company for $28 per share. January call option implied volatility of 23 is below its 26-week average of 45, suggesting decreasing price movement.

Ivanhoe Mines (IVN) is recently down $3.20 to $17.50 following Rio Tinto PLC (RIO) succeeding in its challenge of a certain poison pill defense adopted by Ivanhoe Mines. January call option implied volatility is at 71, March is at 84; compared to its 26-week average of 77 according to Track Data, suggesting decreasing near term price movement.

Endocyte (ECYT) is recently down $6.50 to 3.79 following an independent review of the PRECEDENT trial showed a decrease in the benefit compared to the original analysis. April and July put option implied volatility of 114 is above its three-month average of 76.
Cabot Microelectronics Corporation (CCMP) is recently up $6.71 to $46.92 on the company intending to pay a special cash dividend of $15 per share. In addition, the Board has authorized an increase in the companies existing share repurchase program to $150M, from the previous available authorization of approximately $83M. January and April put option implied volatility of 37 is near its 26-week average.

CBOE Volatility Index (VIX) down 1.16 to 24.51 into FOMC policy decision as U.S. equity’s trade higher.