Weyerhaeuser (WY) adds 54 cents to $20.40 and a 21700-contract block of Jan 20 puts trades on the paper company for $2.75 per contract on ISE when the bid-ask was $2.60 to $2.75. Data from the exchnage suggest an opening position traded firm-to-firm. It’s probably tied to a block of 950K shares at $20.26 and comes after a 6.3 percent skid in shares from 2/3 to 2/15. The stock jumped 5.8 percent to multi-month highs of $21.3 on 2/2 after earnings were reported, but then gave up those gains and more in the days that followed. Today’s put buyer might be anticipating additional volatility in the stock before year end. IV in options on WY is around 30 today, compared to a 52-week high and low of 67 (8/8) and 23 (1/26).
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.