Massey Energy Sees Unusual Put Option Trading (MEE)

Posted in Options 
August 27th, 2009

Massey Energy Co. (NYSE: MEE), the large bituminous coal company, is seeing some very unusual trading today.  As coal often tracks energy stocks this is down 4.5% at $27.58, but the trading volume is not active nor unusual with 4 million shares traded hands as of 12:30 PM EST versus average volume of 6.5 milliuon shares per day (52-week trading range is $9.62 to $68.80).  But then there are the stock options and there is some very unusual trading activity there….. The OCT-2009 $24.00 PUTS have seen some 10,710 contracts trade hands as of 12:30 PM EST and the open interest in this contract was a mere 316 contracts before today.  As far as how this volume compares to other contracts, if you add up all other PUTS for the OCT-2009 expiration this comes to about 8-times the entire spread of PUTS for the month.  This is also more activity in this single exercise than if you took the trades of all open strike prices in all PUTS and CALLS for the SEPT-2009 and OCT-2009 expiration dates. -JON OGG

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