Monday, May 23, 2011

International Game Technology (IGT) - Oct Calls Trading

IGT is trading $17.67, down 0.8% with IV30™ up 4.5%. The LIVEVOL® Pro Summary is below.


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International Game Technology (IGT) is a global gaming company specializing in the design, manufacture, and marketing of electronic gaming equipment and systems.

The company has traded over 9,200 contracts on total daily average option volume of just 1,567. All but 52 contracts have been calls yielding a 176:1 call:put ratio. The action has been in the Oct 17 and 18 calls with over 8,600 trading (combined), substantially purchases from what I see. The Stats Tab and Day's biggest trades snapshots are included (below).

The Options Tab (below) illustrates that the calls in Oct are mostly opening (compare OI to volume). That existing 2,038 interest in the Oct 17 calls looks long to me (just an opinion) based on the volume on 4-20-2011.

The Skew Tab snap (below) illustrates the vols by strike by month.

The skew is pretty normal looking, but notice how the Oct vol (green) is above the front months (both Jun and Jul). There's a also a subtle vol difference that increases to the upside OTM calls.

Finally, the Charts Tab (6 months) is below. The top portion is the stock price, the bottom is the vol (IV30™ - red vs HV20 - blue vs HV180 - pink).

The stock gapped up on earnings last cycle (4-21-2011) as IV30™ dipped on the vol crush. With today's rise, IV30™ is now just above HV180.

This is trade analysis, not a recommendation.

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