News Corp (NWSA) is under pressure and implied volatility is higher amid increased put activity. Shares are down 13.2 percent during the past four days and falling below a 200-day exponential moving average on concerns about the potential fallout from the phone-hacking scandal at its now closed News of the World weekly paper. 8,940 puts and 555 calls traded in NWSA. July 15 puts, which expire at the end of the week, are the most actives. 3,650 traded (98 percent Ask). Looks like buyers of Aug 12, Aug 14, Oct 12, and Jan 12.5 puts as well. Downside put buying has helped send implied vols in News Corp options up 30 percent to 48 on the day.
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.