Ryder Systems (R, news, chart, volatility) is seeing bearish order flow Friday morning. Shares of the trucking company are down $2.30 to $50.69 and have fallen 20 percent since Monday. There has been no company specific news to explain the sell off and the decline seems to be part of industry trends, as YRC Worldwide (YRCW) and JB Hunt (JBHT) also suffered steep losses this week. In the options market, Ryder options volume is running 5 times the normal levels. Most of the activity is in the November 50 and 45 puts. 3,000 of the 45s traded bidside for 70 cents while two blocks (1,500 ea.) of 50s traded for $1.80 and a $1.75.
Sources on the PHLX, the exchange where the trades took place, tell WhatsTrading.com, the action is part of a spread trade. If so, this strategist is bearish: paid roughly $1.77 and has a potential payoff of $3.23 if R continues its losing ways and falls to $45 or less by November options expiration (56 days).
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.