Eastman Kodak (EK) falls to new 52-week lows and is down 18 cents to $2.56. Options in Eastman are heavily traded. 134K puts and 36K calls so far. The top trade is a buyer of 6900 Jan13 $2 puts at 60 cents per contract. It was tied to shares at $2.68 on a 22 delta. The next biggest trade is an Oct 2.5 – 3 bearish risk-reversal, bought at 11 cents, 5000X on ISE at 13:00. Earlier in the day, a Sep 2.5 – 3 bearish risk-reversal was bought at 10 cents, 3515X on ISE. The stock is down nearly 30 percent month-to-date and today’s options order flow in EK seems to reflect concerns about further fallout in the months ahead.
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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.