Tuesday, January 13, 2009
Is HSBC Being Targeted?
Unusual put (bet that stock will drop) volume yesterday:
-March, 2009 45 puts: 87,365 contracts traded
average daily volume excluding yesterday: 161 contracts
-March, 2009 50 puts: 51,378 contracts traded
Back on January 7th, 40,775 contracts traded
average daily volume excluding those 2 days: 192 contracts
It is hard to tell what exactly this means, it could be massive bearish activity or some type of capital markets hedging (equity offering, linked note, etc.). This should be monitored for the next few sessions.
Much like other financial companies the stock (ADR) has been hammered: closed @ $87.67 on 5/2/08, currently trading @ $46.70
Posted by MK at 8:29 AM