Live Nation (LYV), which stumbled on earnings late last week and slid 4.8 percent Friday, saw high put volume again Monday. Shares lost another 14 cents to $9.86 on volume approaching 2 million, which is almost 2X the typical share volume for the Beverly Hills entertainment company. Options volume was 14,000 puts and 650 calls. The top trade was a 2154-lot of April 7.5 puts for 35 cents when the market was 25 to 35 cents. 5,253 traded and open interest increased by 4910. The April 7.5 put, which saw opening activity Friday as well (see 2/24 color), is 23.2 precent OTM and expires in 52 days. Open interest is now 25,460 and the largest positoin in the name. Apr 10, Juy 7.5 and July 5 puts on LYV were actively traded yesterday as well and implied volatility rose 13 percent to 51.5. Like Friday, it appears that at-the-money and downside put buying was driving the flow in LYV Monday. Shares are down another 10 cents to $9.76 Tuesday morning.
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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.