Anadarko Pete (APC) hit a morning low of $34.84 and came within striking distance of its June 9 low of $34.54. Shares are now down 60 cents to $36.07 and 3.5 percent off session lows. In the options, a noteworthy risk-reversal on the ISE at 9:50 when a strategist sold 5000 Nov 27.5 puts at $3.41 apiece and bought 5000 Nov 40 calls at $5.01. ISEE data also shows a separate block of 1042 July 45 calls were bought-to-open at 34 cents 20 minutes later. Implied volatility in APC, the oil drilling company that was a 25 percent partner in the rig that caused the Gulf spill, is up 6 percent to 85.5 after Financial Times published a story late yesterday (Anadarko approved key BP well designs), noting that “both Anadarko and BP have confirmed to the FT that the US company was aware of design choices that lawmakers, who have accused the UK company of cutting corners to cut costs, have criticised.”
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.