OptionsHouse

Options Trading News

November 13, 2012  Tue 12:14 PM CT

CEDC: SEE CHART GET CHAIN FIND STRATEGIES
The bears think Central European Distribution is going down for the count.

optionMONSTER's Depth Charge monitoring program detected the purchase of some 1,900 December 1 puts for $0.15 and $0.20. Volume is triple previous open interest in the strike, which indicates that new money is being put to work in wagers against the stock.
vCEDC, which is based in New Jersey and sells Vodka in Eastern Europe, has been dropping since 2008, when it peaked over $70. It's down another 16 percent to $1.75 in afternoon trading today.

Based on today's put buying, traders think the losses may accelerate over the next six weeks. CEDC's debt load is about 10 times its market capitalization and cash reserves, so bankruptcy or a highly dilutive capital-raising are possibilities.

Overall option volume is 9 times greater than average in the name so far today, according to the Depth Charge. Puts accounted for more than four-fifths of the total.
Share this article with your friends


OptionsHouse

Premium Services

Archived Webinar

Education & Strategy

Options Academy: Ron's Risk Calculation--A Real Life Example

It is rare that I get a chance to give a real-life, real-time example in my articles that the readers were not only following but were actually involved in at the time the event is happening. Well, that is where we are right now in our QQQ trade from last week. Let's recap the trade itself.

View more education articles »