Strange Friday for Office Depot Options (ODP)

Posted in General, Options 
September 19th, 2009

Office Depot, Inc. (NYSE: ODP) has almost never come up with a highly unusual options screen.  Friday was a very active volume day with over 13 million shares traded versus 8.2 million on an average day.  And the 1% drop to $6.31 was much better than things were looking early Friday when this was down as low as $5.82 briefly.  Janney Montgomery Scott gave it a Neutral rating on Thursday, but that should not have sent the volume scurring Friday.  The open interest for the SEPT-2009 contracts that expired in September was not even 10,000 contracts for all the seen put and call strikes combined, so that is not even 1 million shares on a fully leveraged bet basis and would not create a roll-event that occurs on expiration dates.  We saw 6,883 contracts trade in the OCT-2010 $5.00 PUTS and the prior open interest was 9,181 contracts.  And someone made a huge double-sided trade in the JAN-2010 $5.00 PUTS and CALLS, although these may have been closing-out trades and may have been what accounted for the larger volume in common stock as well.  There we saw 33,103 of the $5.00 CALLS trade versus an open interest of 47,664 calls, and we saw 31,445 contracts of the $5.00 PUTS trade versus an open interest of 44,552 contracts.  Out in the JAN-2011 $7.70 PUTS, we saw 11,137 contracts trade versus an open interest of 10,048 contracts. -JON OGG

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