Electronic Arts Inc. (NASDAQ: ERTS) has what appeared to be extremely unusual options trading volume on the surface. It may just be a close-out trade. An options screen showed that the JAN-2011 $20 CALLS showed a whopping 75,877 contracts traded ay 12:15 PM EST, the equivalent of more than 7.5 million shares on a fully leveraged basis. After looking deeper there is also an open interest listed as being 90,053 contracts and the last trade was on the bid-side of the market at $0.07 per contract.
Shares are down 2.6% at $15.01 and trading volume of 2.8 million shares at mid-day is not anywhere close to representing unusual trading volume in the stock. The 52-week trading range is $14.06 to $20.24 and average volume per day is more than 5.3 million shares.
We’d love to have a great flag here, but unfortunately the after-review does not scream anything more than what is noted.
JON C. OGG