Madison Square Garden Falls; Volatility Collapses (MSG)

Shares of Madison Square Garden (NASDAQ: MSG) are falling today on word that LeBron James has decided to play for the Miami Heat and not the New York Knicks (which MSG owns). The stock is currently off by 3.68%, trading at $19.63.

Front month volatility, which has been shooting higher over the past few days (reaching levels near 70%), is collapsing lower today, currently trading near 40%. The front month $20 straddle, which was trading for $1.50/1.90 yesterday (and which I suggested selling), is now trading at $0.90/1.10.

Madison Square Garden, Inc., through its subsidiaries, operates in the sports, entertainment, and media businesses in the United States. It operates in three segments: MSG Media, MSG Entertainment, and MSG Sports.

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