MFA Mortgage Highly Unusual Options Activity (MFA)

Posted in Options 
June 6th, 2008

There has been a sudden explosion in some options trading in MFA Mortgage Investments Inc. (NYSE: MFA) mid-day.  While the trading price on this one was rather low, it is a significant amount of shares if you run these through.  Not only that, but it is for the current month of June 2007.  There have been 28,5099 contracts in the JUNE $7.50 CALLS.  The open interest before this was only 447 contracts.

On a fully leveraged basis this represents some 2.8 million shares.  Keep in mind that these options expire in two-week son June 20, so a significant bet appears to have been made here that good news was coming its way.

Shares are actually down about 1.3% today at $7.15, and it still has not even seen 1 million shares trade hands.  That is highly unusual to see major options activity and low stock volume.  Its average daily volume because of much activity in the past is about 4.1 million shares.  The 52-week trading range in MFA is $5.00 to $11.07.

Jon Ogg
June 6, 2008
12:28 PM EST

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