Fuel Systems (FSYS) is down $5.92 to $44.97 and options volume is running 3X the normal levels. Looks like buyers of Dec 45 puts are looking for additional downside, but with no news to explain the sell off in shares or the interest in FSYS puts. Implied vols (average)are moving up to the mid 60s, up about 16 percent.

update (13:40). Weakness is due reports Italy will not extend its incentives for natural gas usage. FSYS gets 70 percent of its revs from the country. According to a Bloomberg report, “Italian Industry Minister Claudio Scajola may present a decree in January that makes 550 mln euros ($810 mln) available to renew incentives for the purchase of fuel-efficient cars and appliances, la Repubblica newspaper reported without citing anyone. While most of the money made available in the legislation will end up funding the purchase of new cars, incentives will also be given to companies that purchase more efficient machine tools, Repubblica said.”