Frontier Communications (FTR), which has been pounded for a 22 percnet loss so far in 2012, is off 14 cents to $4. The stock saw a volatile move lower a couple of weeks ago and tumbled to a low $3.81 (see 1/27 color) on heavy volume, but not company specific headlines. Shares made a rebound attempt in the week that followed, but are on a six-day losing skid. Implied vols are up considerably Friday — +18 percent to 73 — with a lot of the options activity focused on February 4 calls. 18,100 traded, including a 5000-lot for 20 cents on BATS when the market was 15 to 20 cents. A sweep this morning of 6494 contracts for 25 cents is an opening buyer, according to data from the exchange. Feb 4 puts are seeing interest as well. 7,137 traded, as some players seem to be bracing for additoinal volatility in shares of the Stamford, CT telecomm in the week 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.