Bearishness in Moody's (NYSE: MCO)

By Karla Yeh,

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At 12:24 p.m. EST, more than 7,200 Moody's Corp. (NYSE: MCO ) January 2011 40 calls crossed the tape, and it looks like at least one investor is taking a bearish stance on the ratings company. A look at time and sales suggests an investor sold these calls for the bid price of 22 cents per contract. These calls have dropped five cents on the day, and have an implied volatility of 28%.

Investors who sold these calls are betting that the stock could experience limited upside throughout the next year, and will hit a ceiling at $39.78 at or before January 2011 options expiration.

MCO shares have declined 25 cents, or roughly 1%, to $26.62 so far on the day without any news from the company today.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing Options
Referenced Stocks: MCO

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