Pre-earnings options order flow in Fastenal (FAST) seems somewhat bearish, even as shares add 78 cents to $46 and notch new 52-week highs today. Volume is running 4X the daily average. 7,900 puts and 970 calls so far. January 42.5 puts are the most actives. 5,560 traded (86 percent Ask) against 5,090 in open interest. Jan 40, Jan 45 and Feb 45 puts are seeing interest as well. Implied volatility in FAST is little changed at 30.5, but it looks like some investors are buying puts on the stock to today — possibly a play on earnings, which are due the morning of Jan 18.
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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.