Bearish action in Knight Trading (KCG) is focused on downside $10 puts. Shares are off a dime to $12.21 and Jan $10s are the most actives. 3,352 traded (72 percent Ask). Dec and April 10 puts on KCG have traded 1,039 and 2,851, respectively. Looks like opening activity across all three contracts and ISEE data hints at purchases for customer accounts. Implied vols in the options on the Jersey City investment firm jumped 19 percent to 50.5. The stock came under fire on 10/19 when earnings were reported and are down 12.3 percent since that time. Today’s flow seems to reflect concerns about additional losses for the underlying in the weeks/months ahead.
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.