State Street (STT) is down $2.20 to $51.66 and trading in STT options is brisk, with 29K puts and 9,200 calls traded. Implied volatility (average) is ralllying up to 46, from about 41 late Friday, after the Wall Street Journal reported the bank’s $625 million in reserves for exposure to the sub-prime crisis “may not be sufficient.” Aug 50 puts and calls are among the most actives, along with Aug 48 and 46 puts, Aug 55 calls.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.