Options Brief: First Industrial Realty Trust (FR)

FR – First Industrial Realty Trust, Inc. – Call options on First Industrial Realty Trust are in demand today with the REIT’s shares rallying as much as 13.05% to an intraday high of $4.94. Investors hoping to see FR’s shares continue to appreciate during the second half of 2010 picked up approximately 2,000 calls at the December $5.0 strike for an average premium of $0.75 per contract. Call buyers at this strike are prepared to profit should shares of the underlying stock rally another 16.4% over today’s high of $4.94 to surpass the effective breakeven point to the upside at $5.75 by expiration day in December. Options implied volatility plunged 16.5% lower to 66.94% today following the firm’s second-quarter earnings report released after the closing bell on Monday.

About Andrew Wilkinson 1023 Articles

Affiliation: Interactive Brokers

Andrew Wilkinson is the senior market analyst at Interactive Brokers Group, where he provides daily commentary and analysis on U.S. equity options trading throughout the trading day. Andrew provides webinars designed to explain option-related trading scenarios covering futures, fixed income, forex and equities.

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