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UAL Corp (UAUA) puts active on low volatility after $175M note pricing

June 30, 2009 1:23 PM EDT
UAUA Hot Sheet
Overall Analyst Rating:
    BUY (= Flat)
UAL Corp (Nasdaq: UAUA) is recently down 28c to $3.19. WTI Crude futures are recently down 2.81% to $69.48 a barrel according to Bloomberg. UAUA announced on June 29 the pricing of a $175M in aggregated principle amount of senior secured notes due 2012 with a coupon interest rate of 12.75%. UAUA call option volume of 2,974 contracts compares to put volume of 11,063 contracts. UAL Corp July option implied volatility is at 107, December is at 116; below its six-month average of 122, according to Track Data, suggesting decreasing price movement. Paul Foster

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