AbitibiBowater Inc (ABH) $19.96 -2.20%

Abitibibowater, Montreal based paper goods products company, shares are off 3% to a new low of $19.70 and option volume is 9x the daily average being driven by volume in the January $20 puts in which two large blocks, 1,500 and 1,000 contracts, trade at the $2.30 asking price. Open interest is sufficient to cover and may close a position opened in two parts 6/14 and 6/22 when stock was above the $22 level. Unless this was tied to stock it appears someone is taking a loss on a prior put sale as stock has suffered heavy volume 10% decline in the past two days. No apparent news. Stock has fairly large shor interest of 9.9% of float and eight days to cover ratio.

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