by Houghton and Atkeson 08/25/08
Options trading in Ceradyne (CRDN) has caught our interest today.
Market participants have traded roughly five times the amount of puts to calls. With the stock trading at $44.55 -- almost 50% off its lifetime high in July 2007 -- traders are seemingly making a bearish bet in the ceramic products manufacturer. In particular, there looks to be opening buyers of 1,000 of the CRDN Oct 37.50 Puts (AUEVU).
In addition, there are many lines in the September puts that have seem some action today. Is this big winner of U.S. government defense contracts going to feel the chill from Washington?
Ready to get in on the big-money options trading action? Sign up for your risk-free trial to Nick and Andrew's Big Money Options service, which gives you 2-3 specific trading recommendations a week, delivered by e-mail, PLUS timely profit alerts and trade updates.
Sam Collins
FAST is now consolidating and recently flashed a buy signal from our internal indicator.
Options Expiration Adds Volatility
The opening looks to be higher but today is options expiration day, and anything could happen.
Chances are high stocks will sell off further, but be alert for a dead-cat bounce after such a dramatic breakdown.
Traders and longer-term investors should sell any new positions at the first opportunity and short ETFs on a temporary recovery in the market.
CAT, the blue-chip of its industry, is the first to attract attention when it's time to dress up a portfolio.
