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, 10:55 am
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Williams Cmps WMB (news,
chart,
quote) - WMB option implied volatility indicates less risk on KMI Buyout offer
WMB is up .80 to $22.14. WMB gathers processes and transports natural gas. UBSW say's the KMI management buyout offer "will cause investors to raise the valuation matrix that were applied to pipelines and other energy infrastructure assets." WMB call option volume of 4,386 contracts compares to put volume of 8,712 contracts. WMB June option implied volatility of 30 is below its 26-week average of 34 according to Track Data. Below average option implied volatility suggests decreasing price risk.
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