Schaeffer's Option Skews: Relatively Heavy Put Activity on LDK Solar Co Ltd, General Motors Corp, and Potash Corp. of Saskatchewan.
CINCINNATI -- The PowerShares QQQ Trust (NASDAQ: QQQQ), LDK Solar Co Ltd (NYSE: LDK), General Motors Corp (NYSE: GM), and Potash Corp. of Saskatchewan (NYSE: POT) were among the notable names seeing put buying on Tuesday.
In an interesting turn of events we find the PowerShares QQQ Trust topping today's put skew scan. Just yesterday we saw the QQQQ at the top of the call scan. Given the overall uncertainty about the broad market, it isn't surprising to see option players jumping back and forth.
The put buys on LDK Solar are somewhat curious. The company offered some downbeat comments last week that my colleague Joe Hargett covered but stock was up yesterday. The chart shows the stock is bouncing from an extreme oversold reading. A quick scan through yesterday's option chain shows very heavy volume at the January 2.50 put strike and about half the volume at the Jan 5 put so it seems likely the buys below were part of a spread.
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|Date:||Feb 25, 2009|
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