Interesting bearish option flow in Jo Ann Stores (JAS, news, chart, volatility) today, with the stock off 14cents to $23.88 while the broad market lifts on news from Washington. By noon we have more than 5000 puts traded, against just 42 calls, or 25 times normal volume . Buyers are focusing on April 20 Puts, currently 16% out of the money, with 4700 trading and 73% of volume traded on the ask, while implied volatility has lifted more than 8 points to 70%. Our data shows this activity will create a large block of new open interest, and is for a non-customer account.
About the Author (Author Profile)
Henry Schwartz is the president of Trade Alert LLC, a provider of real-time options analysis tools to leading Wall Street firms. His systems analyze hundreds of thousands of transactions per second to help professionals identify and interpret market activity in real time, supporting informed trading decisions and intelligent idea generation. He has held institutional trading and management roles with Bank of America, Bear Stearns, Salomon Brothers and the Hull Group, and made markets on the CBOE and AMEX floors in the US, and EUREX and MONEP overseas. Prior to founding Trade Alert, he led the electronic market-making group at Bank of America coincident with the launch of the International Securities Exchange. He received his bachelor’s degree in Economics from the University of California, San Diego and his MBA from NYU’s Stern School of Business.