Volume Spike Investor

Lehman Brothers Holdings Inc. (NYSE: LEH) has been under aggressive fire, and with all the needs of capital that have been rumored it is of no real surprise.  Even though the company has denied every rumor out there, it is seeing excessive PUT OPTION activity in the early morning and that should lead to even more volume after the other traders spot this.

At 10:07 AM EST we noticed the following options contracts had traded:
Co    Mo/Strike contracts Price     Change
LEH   JUN20        2,838     $1.00    (+$0.29)
LEH   JUL20         1,932     $1.74    (+$0.34)
LEH   JUN25        1,931     $2.04    (+$0.32)
LEH   JUL30         1,519     $4.80    (+$0.60)
LEH   JUN30        1,512     $3.70    (+$0.35)

By 10:17 AM EST we have seen Lehman shares themselves trade more than 32 million shares, making it already crossing another average daily volume level.  Also by 10:17 AM EST the number of these options contracts had grown far more to more than 7,500 of the JUN20 PUTS and the other strikes were more active as well.

Jon Ogg
June 4, 2008