Through TheFLY's Eyes: Tribune Company

from Theflyonthewall.com




















An Update On The Tribune Company

Tribune (TRB) is down 54c to $31.97. John Madigan was CEO of TRB from 1995 to 2003, Chairman of TRB from 1996 to 2003. Madigan garnered the support of the Chandler Trust in 2000 enabling TRB to purchase Times Mirror for $8B. TRB's SEC Schedule 13D/A filed December 31, 2005 reported stock beneficially owned by Madigan was 1,975,391 shares. TRB has 303M outstanding shares.

Investors are curious if Madigan will become involved with the Chandlers or remain a quiet supporter of TRB management. TRB July call option implied volatility is 26, puts are at 33. TRB 26-week average option implied volatility is 25. Above average option implied volatility with puts more expensive than calls suggests options pricing in more down side risk than upside risk.