Supervalu (SVU) loses 15 cents to $8.51 and 16000 Jan 7.5 puts are sold at 25 cents each. The premium sale was tied to stock at $8.52, according to a source on the AMEX, and might close an existing position. Open interest is 40.5K and currenty the biggest position in the grocery chain. Implied volatility is up 1.5 percent to 62 ahead of earnings, tomorrow, before market. Shares are down 11.5 percent year-to-date and took a hit on Jan 4 after Morgan Stanley downgraded SVU.
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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.