Your Web Site
by: Andrew Wilkinson posted on: October 10, 2008 | about stocks: Rebecca Engmann Darst co-authored this report. Morgan Stanley – More hefty volume in the options series on Morgan Stanley shares, which were once again caught in the crosshairs of the ongoing global rout for equities and the question mark over the broader brokerage business model. Shares are lower by 31% and falling and stood at $8.55 by 11:23am at which time option volume totaled 160,000 contracts. Call trading is swamped by action on the put side by 2.4 times. Most volume was seen at the October 7.5 puts where 15% of volume took place today. The current premium, loaded with 681% implied volatility, is 2.5 and so infers that buyer’s insurance kicks in at a $5.00 share price for MS. The 5.0 strike is active and has traded 14,000 contracts, while the January 12.5... [read full story]
