Implied volatility in the options on Fushi Copperweld (FSIN) remains elevated, as high put volume continues in the Chinese electrical equipment company. 6,930 puts and 510 call traded on the stock so far today, which is 2.5X the daily average. Shares are down 31 cents to $6.20 and the April 5 puts, which are more than 20 percent out-of-the-money and expiring in 11 days, are the most actives. 2520 traded. April 2.5, 7.5 and 10 puts on FSIN are seeing interest as well and levels of implied volatility moved up 26 percent to 182. The stock is on a four-day 18 percent losing skid and, like last week (see 4/3 color), today’s options order flow seems to reflect concerns about additional losses in FSIN shares over the next two weeks.
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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.