Duke Energy (DUK, news, chart, volatility) is seeing bearish order flow Tuesday. Shares are trading down a nickel to $17.56 after the utility company said it was drawing roughly $1 billion from a $3.2 billion credit agreement. CFO David Hauser says, “In light of the uncertain market environment, we made this proactive financial decision to increase our liquidity and cash position and bridge our access to the debt capital markets.” The news appears to have stirred up a bit of bearish trading in DUK options. 6,200 puts have traded so far today, compared to just 343 puts. The October 17.5 puts are the most actives. 3,100 contracts traded. November 15 and 17.5 puts are also active and directional sentiment based on total options order flow in Duke is 65 percent bearish.
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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.