Stocks quoted in this article:
Bluestone Software (BLSW – 17-1/8) makes Java-enabled server software that allows companies to do business in cyberspace. In 1999, the firm's sales totaled $15.6 million, a 92-percent improvement over the previous year. From a technical perspective, the stock has been in quite a slump, suffering a nine-month decline. Since its short-term peak around 108 in mid-January, the shares have retreated nearly 85 percent. The equity is sitting below all of its significant moving averages, both short-term and long-term.
Yesterday, BLSW put options were the latest craze, as the October 15 put was the most-active put option trading on the CBOE. Exactly 20,000 contracts were executed on this out-of-the-money option, which was previously home to 2,401 contracts. All of this volume translated into new open interest, as 22,401 contracts now reside at this front-month strike.
This volume transpired late in the day, as three mammoth blocks crossed the tape between 3:25 and 3:29 p.m. Two of these blocks consisted of 7,000 contracts apiece, while the remaining block was comprised of 6,000 contracts. These blockas all traded between the bid and the ask prices at a cost of 5/8 per contract. In total, these 20,000 contracts are worth $1.25 million. BLSW is down slightly in early-morning activity.