Options Forum: Martha Gets Pumped

Updated from 8:27 a.m. EST

[Editor's note: Martha Stewart was released from a federal detention center early this morning. Shares of Martha Stewart Living Omnimedia(MSO Quote) recently were trading higher by 45 cents, to $34.40, a gain of 1.33%.]

I am long two of the Martha Stewart Living(MSO Quote) September 25 puts, which I bought for $3.50. They currently trade for $4.10 or so [in late Thursday trading] despite the fact that the stock is up 70 cents to $32.74. Has there been a significant ratcheting up in the implied volatility for MSO since [Martha Stewart] gets out of prison ... or what else explains the gain on a position that would be down [Thursday], all else equal?

Thanks
Bill ...