Tuesday’s OptionsPlace: Piling Into DryShips Calls

With stocks pushing to three-week highs, options volatility continued its
downtrend on Tuesday. The CBOE Market Volatility Index was down 0.8% to 32.01
– its lowest level in nearly two weeks. The CBOE put/call ratio was recently
at 1.02, continuing to hold between its 50-day and 200-day moving average. Here
are some notable options movers: Molycorp (NYSE: MCP ): With the underlying
stock up more than 5% on merger speculation, the company's call-options are
getting interest, with 14,300 calls trading vs. 6,900 puts. DryShips (NASDAQ:
DRYS ): The company reports earnings Tuesday after the close. About 6,000 calls
have traded vs. 750 puts. Its Sep 4 calls have traded 1,060 contracts vs. open
interest of 22,300, pushing implied volatility up about 8 points to 92%. Equinix
(NASDAQ: EQIX ): Its Sep 85 puts are popular, with 1,000 contracts trading vs.
open interest of 1,030, pushing implied volatility up about 3 points to 58%.
Supervalu (NYSE: SVU ): The company's Sep 8 puts are active, with 2,240
contracts trading vs. open interest of 2,850, pushing implied volatility down
about 7 points to 59%.