Stocks quoted in this article:
Assured Guaranty Ltd.
is attracting heavy put volume today, according to data from WhatsTrading.com. The stock has seen some 1,856 puts cross the tape, representing 2.41 times its average daily volume. It seems that a fair portion of the day's put volume consists of newly purchased positions, with 94.4% of the contracts crossing near the ask price.
Most of the action is happening at AGO's June 12.50 put, where 1,821 contracts have changed hands on open interest of 4,878. A single block of 1,418 contracts traded at 10:23 a.m. for a price of $0.35, near the ask. Implied volatility on the option jumped by 1.8% following the trade.
Assuming these puts represent the initiation of a new bearish bet on AGO, the trader is looking for a sharp drop in the shares prior to next Friday's expiration. The stock is currently trading at $14.71, and enjoying the support of its 10-day and 20-day moving averages. These two trendlines have guided AGO higher since mid-March.