National City (NCC) continues to see active trading following last week’s news that regulators were stepping up scrutiny of the company and its capital position. Shares are down 48 cents to $4.47 and volume in the options market is running double the normal. Order flow is mostly bearish, with 8,700 puts trading, or more than three times the number of call options. The NCC July 4 and July 5 puts are the most actives, with 96 percent of trading hitting on the offer. Meanwhile, Wachovia (WB) and Washington Mutual (WM), which have been trading lower in sympathy with NCC, are also seeing active trading. WM is off $1.09 to $6.43 and seeing three times its normal options trading volume. WB is down $1.53 to $18.60 and trading is active in the WB June, July, and October put options.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.