NYSE Euronext has been trending lower, and the bears are
tightening their grip.
optionMONSTER's Depth Charge monitoring program detected the
purchase of about 8,300 September 18 puts for $0.29 and the sale of
an equal number of September 23 calls for $2.12. Volume was more
than 6 times open interest at both strikes.
Some 5,000 June 28 calls were bought around the same time for $0.03
against previous positioning, which indicates that an existing
short position was closed and rolled forward by three months.
NYX rose 0.33 percent to $24.33 on Friday and has lost 18 percent
of its value in the last three months. The operator of financial
exchanges has been falling amid weak trading volumes and after
failing to merge with Germany's Deutsche Bourse.
Two aspects of the option activity were especially bearish. First,
the trader significantly increased the number of contracts in the
bet against the stock. Secondly, the investor rolled the short
calls down from $28 to $23, which lowered by $5 the level at which
he or she is willing to sell stock.
The fact that the new strike price is less than Friday's close
reflects a belief there is no hope of a rally. (See our
Overall option volume was 13 times greater than average in the
session, according to the Depth Charge.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.
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