Tyson Foods (TSN) $6.89 -13.77%

| October 28, 2008 | 0 Comments More

Tyson (TSN, news, chart, volatility) options volume is running three times the usual, as shares of the meat producers get slaughtered midday Tuesday. TSN is down $1.13 to $6.86, Pilgrims Pride (PPC) tumbled 74 cents to $1.39, and Smithfields (SFD) is off $1.79 to $9.00 a share. The slide in the sector seems to reflect ongoing liquidity concerns after PPC said yesterday it is working to address financial challenges the company and the chicken industry are currently facing. In the options market, traders are focused on TSN Tuesday, with 4,837 puts and 5,375 calls traded on the day. While not all the trading is bearish, the January 5 puts are the most actives. 2,242 have traded, 70 percent on the offer, which seems to reflect concerns about the stock for the rest of the quarter and heading into 2009.

Category: All Stocks, Food & Beverage, Mid Cap Stocks

Please share if others would benefit

Leave a Reply

You must be logged in to post a comment.

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.