How Deep Will Government Spending Cuts Go? Ask Ceradyne (CRDN)
by Houghton and Atkeson  
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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?



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Sam Collins

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