Wednesday, March 24, 2010

MF Global (MF) - The Power of Goldman

MF is trading 8.03 up 9.7% with IV30™ up 35%. The LIVEVOL™ Pro Summary is below.

The stock and options have traded heavily today. The stock has traded over 23.6 mllion shares on daily average of just 1.5 million. The Stock Stats snap is included.

Here's the news: (
After the market closed on Tuesday, MF Global announced that it had hired former New Jersey Governor and Goldman Sachs(GS) head John Corzine as its chairman and chief executive, effective immediately.

After the announcement, MF Global's stock popped more than 11% to $7.32 in the after-hours session Tuesday

Ah, the power of Goldman... You think this guy may have an inside track to the government and rule making with respect to CDOs, etc?...

The company has also traded nearly 10,000 options in the first three hours on total daily average option volume of just 251. Calls are trading in a 3:1 call : put ratio. The Stats Tab snapshot is included (click either image to enlarge).

The Options Tab (click to enlarge) illustrates that the Apr 10, May 10 and Jun 10 calls are most active. Apr and May are all opening (zero open interest). Jun is mostly opening. Apr and May seem like pre-dominantly purchases. Note the vol jump in the first three months.

Finally, the Charts Tab (1 year) is below (click to enlarge). The top portion is the stock price, the bottom is the vol (IV30™ - red vs HV20™ - blue). The yellow shaded area at the very bottom is the IV60™ vs. the HV60™ vol difference.

Note MF has gapped up on the news and broken through a trading range to a 52 wk. high.

This is trade analysis, not a recommendation.

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