Cyberonics (CYBX), the Houston, TX medical instruments company, is down $3.64 to $44.64 in heavy trading of 3.5 million shares after theStreetSweeper (dot org) blog mentioned the company negatively in a piece titled Blowing the Whistle on Cyberonics – LINK. Shares are reeling and implied volatility in the options on the stock is ripping to 52-week highs amid active trading. 9,285 puts and 350 calls so far. The top trades are a July 45 – 50 put spread at $3.10, 2600X and appears to close a position in July 50s at $9.28 per contract, which was bought on 1/10 and 1/11 for $4.10 when the stock was about 20 percent above current levels. A new position in July 45 puts is being opened for $6.18 and seems to be expressing the view that further losses are likely. Feb 45, Feb 40 and Mar 40 puts are the next most actives in CBYX and 30-day ATM implied volatility jumped 27 percent to 27.
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.