Stock Market Movers: Walgreen, Best Buy, Dyax

Early-morning bullish trading on the specialty retailer of consumer electronics suggests shares are not likely to decline much below the current price. Best Buy’s shares are slightly off this morning by less than 0.25% to $43.49. Optimistic investors are initiating credit put spreads in the near-term December contract. It appears approximately 5,000 puts were sold at the December 43 strike for an average premium of 1.26 apiece, spread against the purchase of roughly the same number of contracts at the lower December 41 strike for 65 cents each. Credit-spreaders pocket an average net credit of 61 cents per contract, which they keep if shares remain above $43.00 through expiration day.

WAG - Walgreen Co. - The largest drugstore chain in the U.S. posted a 3.9% increase in same-store sales for the month of November, which failed to satisfy average analyst expectations of 6.1%. The smaller-than-expected rise sent Walgreen’s shares 4% lower this morning to $37.76, and pushed implied volatility 15.39% higher to 27.92%. Option traders exchanged roughly 4,600 contracts on the stock by 10:15 am (EDT).

DYAX - Dyax Corp. - Shares of the biotechnology company jumped 27% to a new 52-week high of $4.46 this morning on news the firm received U.S. regulatory approval for its drug to treat hereditary angioedema. Option implied volatility on the stock imploded 50.42% to 118.27%. Investors exchanged approximately 3,615 call options at the December 5.0 strike as of 10:22 am (EDT). Total option volume thus far in the session exceeds 4,760 contracts, which represents 52% of total existing open interest on the stock of 9,099 lots.