Focus Media (FMCN) drops $1.43 to $23.32 in active trading of 4.35 million shares after Reuters reported that private equity firm CDH dropped out of a consortium of investors looking to buy the Chinese online ad display company (LINK to Story). At least 34,000 puts and 19,000 calls traded on FMCN. While Apr 26 calls are among the most actives, downside Dec 22, Jan 20 and Jan 22 puts are seeing brisk trading as well. Even deep out-of-the-money [DOOM] Jan $14 puts are seeing some flow today. Meanwhile, 30-day implied volatility in FMCN options jumped 75 percent to 58.
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.