Constellation Energy (CEG, news, chart) is seeing three times its normal options trading volume as the stock sinks to a new 52-week low. Shares are trading down $4.66 to $68.38 in reaction to a 10-Q filing released yesterday. In the filing, the company discloses that collateral obligations have increased compared to levels in the first quarter due to increases in prices and changes stemming from omissions in the company’s calculation at the end of the first quarter. The news sent shares skidding and, in the options market, CEG put volume is outpacing call volume by a margin of almost four to one. Interestingly, some options players seem to have anticipated some bad news. On August 4, CEG options activity rose to 19 times the usual on active buying of January 70/60 put spreads.
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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.