Annaly Capital (NLY) adds 48 cents to $17.27 and implied volatility is easing today. Shares have rebounded sharply from the lows of $14.05 seen Friday morning when fears about US debt default sent the mortgage REIT plummeting in volatile trading (see 7/29 color on HTS and NLY). Options in Annaly remain heavily traded again today. 13K calls and 16K puts so far, which is 3X typical volume for the first hour of trading. The top trade is a 2,055-contract block of Aug 18 calls at the 14-cent asking price. Aug 16 puts are the most actives, with three blocks totaling 5,000 traded mid-market at 12 cents just before 10:00 on AMEX. It might be a liquidating trade, as open interest is 10,475 and implied volatility in NLY is down 28 percent to 27 now that a debt deal has been struck.
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.