Friday, September 17, 2010

SVNT IMPLIED VOLATILITY ON FIRE....IS THE MARKET ANTICIPATING A BUYOUT? SEEMS LIKE IT.

Hello folks. Just thought I'd give you all a heads up on svnt. The stock is somewhat neutral (in relations to yesterdays closing price) but the Implied Volatility is screaming to the upside. The Jan 11 22.5 and 25 strike calls are up nearly 20-30% based on this alone. I don't know if the market will begin to price the stock accordingly but my I suspect that it may. In either case, the options market seem to suggest a buyout happening relatively soon in the $25-30 range which is on the higher side of the price targets initiated by the various Equity Research guys. In either case, anything north of $26 would create a massive profit for even our Jan 11 $25 strike calls.

No comments:

Post a Comment