Caution Indicators to Watch on Your Stock Market Radar

Following is some information on the change in implied volatility for a number of companies’ options. Briefly stated, implied volatility is a measurement that attempts to connect the volatility of a share’s price to the volatility of the price of an option based on the share. Generally speaking, as implied volatility increases, the sentiment about the underlying security turns bearish. Conversely, as implied volatility decreases, sentiment about the underlying security is bullish.

  • Acme Packet, Inc. (NASDAQ:APKT): The implied volatility of options on this security is 92.5, which represents a change of 11% over the previous trading day. The option is trading at $5.40, which is a change of -12% on volume of 291 contracts. The underlying shares recently traded at $39.54 and have traded in a 52-week range of $33.07 to $84.50. The company’s market capitalization is $2,629,971,292. About the company: Acme Packet, Inc. provides session border controllers for Internet service providers.  The Company’s products consists of hardware and proprietary software that allow service providers to deliver interactive communications services such as voice over Internet protocol.
  • Altra Holdings, Inc. (NASDAQ:AIMC): The implied volatility of options on this security is 78.8, which represents a change of 22% over the previous trading day. The option is trading at $3.30, which is a change of 0% on volume of 500 contracts. The underlying shares recently traded at $12.01 and have traded in a 52-week range of $10.12 to $27.48. The company’s market capitalization is $322,426,819. About the company: Altra Holdings, Inc. designs, produces, and markets a wide range of mechanical power transmission, or MPT, and motion control products.  The Company’s product portfolio includes industrial clutches and brakes, enclosed gear drives, open gearing, couplings, engineered bearing assemblies, linear components and other retailed products.
  • Career Education Corp. (NASDAQ:CECO): The implied volatility of options on this security is 79, which represents a change of 10% over the previous trading day. The option is trading at $0.75, which is a change of -38% on volume of 498 contracts. The underlying shares recently traded at $14.89 and have traded in a 52-week range of $12.24 to $27.60. The company’s market capitalization is $1,135,674,442. About the company: Career Education Corporation provides private, for-profit postsecondary education in the United States and Canada.  The Company’s schools offer a variety of bachelor’s degree, associate degree, and non-degree programs, with a core curricula of information technologies, visual communication and design technologies, business studies, and culinary arts.
  • Citigroup (NYSE:C): The implied volatility of options on this security is 69.4, which represents a change of 10% over the previous trading day. The option is trading at $2.52, which is a change of -1% on volume of 235 contracts. The underlying shares recently traded at $24.63 and have traded in a 52-week range of $21.40 to $51.50. The company’s market capitalization is $71,869,084,254. About the company: Citigroup, Inc is a diversified financial services holding company that provides a broad range of financial services to consumer and corporate customers around the world.  The Company’s services include investment banking, retail brokerage, corporate banking, and cash management products and services.
  • Comteh Telecomm Corp. (NASDAQ:CMTL): The implied volatility of options on this security is 61.2, which represents a change of 84% over the previous trading day. The option is trading at $1.55, which is a change of -48% on volume of 2769 contracts. The underlying shares recently traded at $30.99 and have traded in a 52-week range of $23.51 to $32.00. The company’s market capitalization is $727,122,672. About the company: Comtech Telecommunications Corp. designs, develops, and manufactures technology electronic products and systems.  The Company’s communications products are used worldwide for voice, data, facsimile, and video transmissions at microwave frequencies in satellite, over-the-horizon microwave, terrestrial line-of-sight, and wireless telecommunications.
  • ConocoPhillips (NYSE:COP): The implied volatility of options on this security is 34.9, which represents a change of 14% over the previous trading day. The option is trading at $0.93, which is a change of -21% on volume of 441 contracts. The underlying shares recently traded at $64.16 and have traded in a 52-week range of $58.37 to $81.80. The company’s market capitalization is $90,417,081,081. About the company: ConocoPhillips is an international, integrated energy company which operates in several business segments.  The Company explores for and produces petroleum, and refines, markets, supplies and transports petroleum.  ConocoPhilips also gathers and processes natural gas, and produces and distributes chemicals and plastics.
  • Exelon Corp. (NYSE:EXC): The implied volatility of options on this security is 26.1, which represents a change of 48% over the previous trading day. The option is trading at $3.10, which is a change of -42% on volume of 210 contracts. The underlying shares recently traded at $41.93 and have traded in a 52-week range of $39.05 to $45.27. The company’s market capitalization is $27,786,686,748. About the company: Exelon Corporation is a utility services holding company.  The Company, through its subsidiaries, distributes electricity to customers in Illinois and Pennsylvania.  Exelon also distributes gas to customers in the Philadelphia area as well as operates nuclear power plants in stated that include Pennsylvania and New Jersey.
  • FormFactor (NASDAQ:FORM): The implied volatility of options on this security is 69.9, which represents a change of 13% over the previous trading day. The option is trading at $0.90, which is a change of 6% on volume of 1000 contracts. The underlying shares recently traded at $6.74 and have traded in a 52-week range of $5.91 to $11.05. The company’s market capitalization is $342,726,218. About the company: FormFactor, Inc. designs, develops, and manufactures advanced semiconductor wafer probe cards.  The Company’s products are based on MicroSpring interconnect technology, which includes resilient spring-like contacts that are manufactures using micro-machining and scalable semiconductor-like wafer fabrication processes.
  • General Growth Properties (NYSE:GGP): The implied volatility of options on this security is 76.7, which represents a change of 21% over the previous trading day. The option is trading at $1.00, which is a change of -33% on volume of 300 contracts. The underlying shares recently traded at $11.85 and have traded in a 52-week range of $10.68 to $18.27. The company’s market capitalization is $11,118,690,584. About the company: General Growth Properties, Inc is a real estate investment trust.  The Company owns, operates, leases, acquires and expands enclosed regional shopping mall centers throughout the United States.  The REIT, with its operating partnership also has unconsolidated equity interests in other regional mall companies.
  • Harman International (NYSE:HAR): The implied volatility of options on this security is 80.3, which represents a change of 31% over the previous trading day. The option is trading at $0.76, which is a change of -46% on volume of 447 contracts. The underlying shares recently traded at $30.44 and have traded in a 52-week range of $25.53 to $52.54. The company’s market capitalization is $2,128,697,455. About the company: Harman International Industries, Inc. designs, manufactures and markets audio and electronic systems.  The Company’s automotive segment designs, manufactures and markets audio, electronic and infotainment systems for vehicle applications and its Consumer segment designs, manufactures and markets audio and electronic systems for home, mobile and multimedia applications.

(Note: Data about these options’ implied volatility are sourced from Bloomberg. Price data about the underlying security (share) are sourced from Google Finance. All data are assumed to be accurate.)

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