Thursday July 23, 10:27 PM
STOCKS NEWS US-Bears flock to PNC Financial put options
Stocks on the move Real (Frankfurt: BJU.F - news) -time Equity news
1710 ET 23July2009-Option bears look at PNC Financial puts
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PNC Financial Services fell 4.33 percent to $35.79. It reported a
steep drop in quarterly earnings, hurt by credit losses and in its options,
bears clawed at puts in the November contract, said Andrew Wilkinson, market
analyst at Interactive Brokers Group. One player apparently enacted a ratio put
spread in a bid to profit to the downside, he said. The Nov $36 strike had
20,000 puts bought for an average premium of $4.08 apiece spread against the
sale of 40,000 puts at the Nov $31 strike for $1.97. The cost of the trade was
14 cents and yields maximum potential profits of $4.86 if shares fall to $31 by
expiration. He also noted new put action at the Nov $29 strike and the $27.5
strike where 15,000 puts traded.
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