Volume Spike Investor

PNC Financial Services (NYSE: PNC) has been one of the more insulated financial services firms during teh entire financial and market meltdown.  Even on a day where financial markets are growing concerned that Fannie and Freddie are going to be wiped out by the government bailout.  That being said, why is it that PNC has seen 16,250 option contracts trade in the SEPT08 $60.00 PUTS trade hands?  Before this the open interest was only 4,760 contracts…. We have also seen 8,188 of the SEPT08 $65.00 PUTS trade hands and the open interest there was only 4,621 contracts   And shares at 3:06 PM EST are actually up 1% at $69.41.

It is very possible that this is a PUT SPREAD of some sort, but without any definitive matching up of orders or something of the like it is hard to know on a live basis. On the surface this would seem like it was a PUT SPREAD when you look at the trades.  Things that make you go “Hmmmmm!!!”

JON C. OGG
August 20, 2008