Volume Spike Investor

MFA Mortgage Investments Inc. (NYSE: MFA) rarely if ever makes the most active options list. Today it defied that statement.  The stock actually rose much less than other financials as its gain to $6.35 was a mere 2.1%.  We saw 50,253 contracts of the AUG08 $7.50 CALLS trade today.  The prior open interest was a mere 446 contracts.  When we look at the open interest and add in today’s volume in all of the close contracts that expire this Friday, that 50K is about 6-times all of the outstanding current month contracts volume and open interest.

MFA Mortgage’s stock also only traded 2.75 million shares today and that is under the 2.82 million shares on average.  Its 52-week trading range is $5.00 to $11.07 and its market cap is $963 million.

Jon C. Ogg
July 16, 2008