Market Minute:
Unique information ‘flows’ on active options, volatility spikes, and put/call chatter.
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posted by:Paul Foster on May 30, 2006, 7:21 am
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Navistar NAV (news,
chart,
quote) - NAV differentiated option implied volatility, June at 49, July at 35
NAV was downgraded to Underperform from Peer Peform by BEST on "1) low accounting visibility; 2) expected spike in warranty costs; and 3) upcoming 16-18 month downturn in Class 8 orders." Dow Jones carried a story on 5/26/06 that MAN AG might consider taking a stake in NAV. NAV June option implied volatility is at 49 above its over all option implied volatility and its 26-week average of 36 according to Track Data. Above average option implied volatility suggests larger price risks.
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