Investors gobbled up calls on CenturyLink (CTL) this morning, the day after the stock plummeted 22.6 percent on an earnings miss yesterday. The stock has added a nickel to $32.32 on heavy turnover of 22 million shares. Meanwhile, 33,000 calls and 8,135 puts traded on the Monroe, LA telecomm. Eight of the ten most actives are call options, being led by the Mar 33, Jul 35, and Mar 34s. Looks like some investors are anticipating a bounce in the weeks ahead and 30-day implied volatility, which was up 30 percent yesterday, ticked another 6 percent higher to 22.5 — the upper end (97th percentile) of the 52-week range.
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.