Options Brief: Tyco International (TYC)

TYC – Tyco International Ltd. – Manufacturing and service company, Tyco International Ltd., enticed bullish options players to the July contract even though the price of its shares are down 2.3% to $36.99 as of 11:00 am (ET). Investors expecting Tyco’s shares to rebound ahead of expiration next month purchased approximately 3,600 calls at the July $37 strike at an average premium of $1.40 per contract. Call buyers at this strike price make money if the price of the underlying stock increases 3.8% to surpass the average breakeven price of $38.40 by July expiration. The jump in demand for call options on Tyco International Ltd. helped lift the stock’s overall reading of options implied volatility 14.9% to 30.70% in the first half of the trading session.