An institutional player sold the January 10-7.50 put spread some 4,000 times today, according to OptionMonster's tracking systems. Now when you sell a $2.50 put spread for nearly $2, it's the equivalent of buying the same call spread (7.50 - 10) for $.50. In other words, it's a bullish trade in the stock, which is up nearly 9% to $7.44 in afternoon trading.
CYPB saw unusual trading on Dec. 23, both in options and the stock itself. Volume was heavier than normal, with more than 636,500 shares changing hands versus a daily average of about 572,000 during a slow holiday week for the rest of the market. At the same time, nearly 8,000 puts traded at the January 5 strike.
P.S. Will you be there when Cramer makes his next move?
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Jon "DRJ" Najarian is a professional investor, noted media analyst and speaker, and cofounder of optionMonster. Following a brief stint as a Chicago Bears linebacker, Jon launched his financial career at the Chicago Board Options Exchange in 1981, trading in the pits for some 25 years. In 1989 he founded Mercury Trading, running the company for 15 years until 2004, when he sold his floor-trading operations to Citadel, one of the world's largest hedge funds. More recently, Jon -- often known after his CBOE floor call letters "DRJ" -- has developed and patented trading applications used to identify unusual activity in stock, options and futures markets, notably the Heat Seeker program, which uncovers extraordinary buying patterns from among the 180,000 quotes per second that stream from America's stock, options and futures exchanges. In addition to optionMonster.com, Jon's research and analysis is widely cited by leading financial media including The Wall Street Journal, Barron's, Reuters, Bloomberg, Dow Jones, Fox News Channel, CBS Radio and CNBC. Jon is a CNBC contributor, hosts a CBS Radio show, and webcasts twice daily on CBOE-TV.
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