Cemex (CX, news, chart, volatility) is seeing unusual action. The stock is down 49 cents to $19.96 and puts are active for a second day. Yesterday, volume jumped in the January puts on ratio spread trading. Today, another 12,000 puts traded, compared to 2,000 call options. This time, however, the focus is on the short-term options. 10,600 of the September 17.5 puts traded, compared to open interest of 531. 98 percent traded on the offer. The action hints at opening put buys. Yet, these options are 12.3 percent out of the money and only have six days of life remaining. So, if they are indeed being bought, it seems to be due to concerns about a possible move lower in CX between now and next Saturday.
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.