Verizon (VZ) is down $1.16 to $44.73 and the third biggest loser in the Dow (behind AXP and BAC) after the company reported in-line earnings, but its wireline segment disappointed due to weak business spending. Overall options flow in VZ seems somewhat bearish as well and includes an Oct 34 – 43 (2X1) put ratio spread bought for 63 cents, 10000X on ARCA. It’s tied to 250K shares at $44.85. Separately, 10,000 Oct 34 puts were bought on the stock for 10 cents per contract and tied to $44.70. Earlier in the day, a 6400-lot of at-the-money Jan 45 puts were bought for $5.50 on ISE and tied to 350K shares at $45.32. Thirty-day ATM vols in VZ have eased 15 percent and are only 12.8 percent, but the overall options flow seems to reflect expectations for heightened volatility for Verizon in the months 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.