Thursday, December 17, 2009

SUPERVALU (SVU) - Put Buyer with Stock Drop

SVU is trading 12.75 - down over 25% in the last month. The LIVEVOL™ Pro Summary is below.



The company averages 2,800 option contracts traded a day - in 3 hours over 5,700 option contracts have traded today. Of those, ~5,400 were puts (94% of total contracts). You can see the Company Tab snapshot below (right click ---> "Open Link in New Tab" to enlarge).



The largest trades of the day are Apr 10 Puts purchases for 0.30 (over 5,200 contracts purchased). You can see both the largest trades snap from the Company Tab as well as the entire trade list for that line from the Options Tab below (right click ---> "Open Link in New Tab" to enlarge). I have included the second image to clearly illustrate each trade was on the offer (green coloring).





The Options Tab snap below demonstrates that these are opening orders - see the tiny OI. These trades were not done with stock (you can check this by going to the Time & Sales Tab and looking for "Underlying trades" at the same time as the option trades i.e. 10:34 EST). (right click ---> "Open Link in New Tab" to enlarge).



Finally the Charts Tab illustrates the nose dive in the stock over the last month (right click ---> "Open Link in New Tab" to enlarge).



Dipping stock, opening baby put purchases in April with no stock hedge. Hmm...

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