Friday, August 7, 2009

Put Trading Jumps on NRG Energy (NRG)

The stock is off six cents at $27.79 while the DJUA is up 1.25%. From Schaeffer's Research:

NRG Energy (NRG) was the focus of some brisk options trading yesterday, as more than 45,000 contracts changed hands. This jump in volume was roughly three times the stock's average single-day trading volume of 15,194 contracts. Furthermore, data from shows that 98% of the volume traded on the put side.

Yesterday's preference for puts runs counter to the recent trend on the International Securities Exchange (ISE). During the past 10 trading sessions, roughly two calls have been purchased to open for every one put purchased to open. This ratio of calls to puts is higher than 54% of all those taken during the past 12 months....MORE