Twitter Options Open Over 25% More “Expensive” Than Facebook

Twitter’s stock price is not happy. The unleashing of Twitter options this morning appears to have created a need to sell the underlying (after yesterday’s exuberant pre-options jump). Over 1 million lots (100 million shares) have changed hands already in Twitter across all maturites but perhaps most notable is the demand. At-the-money implied volatility (an apples-to-apples way of comparing options ‘costs’) is around 50% for a December maturity which compares to 40% for Facebook options of the same maturity. It seems more than a few of the IPO owners are looking to hedge (as puts are notably more “expensive” than calls).

 

  • FB Dec Calls 39.75%, Puts 39.92%
  • TWTR Dec Calls 49.02%, Puts 50.76%

 


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/c64-824zWjg/story01.htm Tyler Durden

Leave a Reply

Your email address will not be published.