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, 10:56 am
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Tribune TRB (news,
chart,
quote) - TRB option implied volatility decreases after announcing Modified Dutch Auction
TRB is up 2.09 to $29.98. TRB has authorized the purchase of 53 million shares in a modified "Dutch Auction" tender offer. Shareholders will have the opportunity to tender some or all of their shares at a price that is not greater than $32.50 and not less than $28. DBAB maintains its Sell rating on TRB and say's "we applaud TRB for making a significant move to improve its capital structure and working to create shareholder value. Unfortunately this does not change the significant structural headwinds that TRB faces and post the Dutch auction, leaves them with little financial flexibility." TRB June & July option implied volatility decreases to 22 from 25 according to Track Data. Decreasing option implied volatility suggests reduced price fluctuations.
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