The List of companies with unusual option trading in U.S. exchanges today

The following is a list of companies with unusual option trading in U.S. exchanges today. Stock symbols are in parentheses after company names. Option trading and stock prices are as of 3:35 p.m. in New York.

Each call option gives investors the right to buy 100 shares of a company at a certain price, called the strike price, by a given date. A put conveys the right to sell 100 shares.

The Chicago Board Options Exchange Volatility Index rose 9.5 percent to 25.76, the highest since April 2003. Higher readings in the so-called VIX, derived from prices paid for Standard & Poor's 500 Index options, indicate traders expect bigger share- price swings in the next 30 days. The S&P 500 lost 0.7 percent.

Bank of America Corp. (BAC US): Implied volatility for calls on the second-biggest U.S. bank rose to 28.41 percent, the highest since April 2003. An increase in volatility indicates traders anticipate bigger swings in the stock price. Biola University, located in La Mirada, California, sued Bank of America and Paris-based BNP Paribas for conspiring to overcharge the school for $84.2 million of interest-rate derivatives. Bank of America shares fell 0.9 percent to $47.

Beazer Homes USA Inc. (BZH US): Implied volatility for calls on the homebuilder facing investigations by the FBI and securities regulators more than doubled to a record 190.04 percent as investors speculated the homebuilder may file for bankruptcy. ``We do not know where these scurrilous and unfounded rumors started,'' Beazer said in a statement.

An increase in volatility indicates traders anticipate bigger swings in the stock price. Beazer shares fell 21 percent, the most ever, to $11.05. Implied volatility for calls on other homebuilders also jumped. Hovnanian Enterprises Inc. jumped to 100.65 percent, the highest since September 2001. Lennar Corp., the largest U.S. homebuilder, increased to 56.71 percent, the highest since December 2002.

Walt Disney Co. (DIS US): Implied volatility for calls on the second-largest U.S. media company rose to 30.31, the highest since November. An increase in volatility indicates traders anticipate bigger swings in the stock price. The company may say third-quarter profit rose on higher sales of television advertisements at the ABC network and merchandise based on the ``Pirates of the Caribbean'' movies. The report is scheduled for release after markets close today.

source:bloomberg.com