Filed under: Deals, Engagements

Wal-Mart:(NYSE:WMT) volatility Elevated on unconfirmed chatter of Sam's Club spin-off. WMT, is recently down .27 to $45.96 on renewed speculation the company may spin-off its slower growth Sam's Club division. On 5/15 WMT reported total 2nd quarter sales of $85 billion, up 8.3% from a year ago while Sam's Club stores had sales of $10.3 billion, up 5.6% from a year ago period. WMT over all option implied volatility of 23 is above its 26-week average of 20 according to Track Data.

Wild Oats Market:(NYSE:OATS) volatility Elevated into FTC attempt to block Whole Foods:(NYSE:WFMI) purchase. OATS is recently up .50 to $16. WFMI made a bid of $18.50 for OATS on 2/21/07. The Federal Trade Commission-FTC is seeking a preliminary injunction to block the merger. A two day hearing begins in federal court in Washington on 8/1. OATS September option implied volatility of 48 is above its 26-week average of 28 according to Track Data, suggesting larger near term price risks.

Paul Foster of theflyonthewall.com.

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