In what might be a hurricane irene related play, a buyer has stepped in for upside calls in heavy construction firm Shaw Group paying 15cents for a total of 10K Sep 25 calls to open a new position, as shares traded near $21.27 this afternoon. Total call volume in SHAW is approaching 20,000 contracts, 73x the typical mid-afternoon level. Since SHAW provides services to energy firms, they could be a beneficiary in the case of significant drilling rig damage from Irene over the next few days. Shares did catch a lift in April 2010 when the BP spill in the gulf dominated the headlines.
About the Author (Author Profile)
Henry Schwartz is the president of Trade Alert LLC, a provider of real-time options analysis tools to leading Wall Street firms. His systems analyze hundreds of thousands of transactions per second to help professionals identify and interpret market activity in real time, supporting informed trading decisions and intelligent idea generation. He has held institutional trading and management roles with Bank of America, Bear Stearns, Salomon Brothers and the Hull Group, and made markets on the CBOE and AMEX floors in the US, and EUREX and MONEP overseas. Prior to founding Trade Alert, he led the electronic market-making group at Bank of America coincident with the launch of the International Securities Exchange. He received his bachelor’s degree in Economics from the University of California, San Diego and his MBA from NYU’s Stern School of Business.