Tuesday, September 8, 2009

Put Options Alert: hhgregg (HGG)

hhgregg, Inc. (NYSE: HGG) is seeing activity in the October $15 puts, with shares at $16.80.  These have traded more than 4,500 contracts against OI of 46, unusually large action and in multiple sizable lots with more than half the action offer side.  Implied volatility is also spiking from 61% to 66%.  The chart is looking fairly weak with a potential 20/50 EMA bearish cross.  There does not appear to be any upcoming catalysts but potentially Analysts are beginning to feel the company’s expansion initiatives are too much for the current consumer environment, and the company may need to scale back expectations.    The put action is now nearly 100X the average action for a day.

Joe Kunkle, OptionsHawk.com


No comments:

Post a Comment