Thursday, April 29, 2010

Harman (HAR) - Huge Drop on Earnings - Order Flow Tip?

HAR is trading 41.19 down more than $10 off of earnings. The LIVEVOL™ Pro Summary is below.



The daily averages for option volume are included (click to enlarge).



I hate to do this twice in one day, but...

Yesterday the company traded 3,631 options - which makes sense as it was the day before earnings... But, check this out (click to enlarge the Time & Sales).



Starting 15 minutes from the close 2,531 puts were purchased. That's 5x daily average put volume and even for the day of earnings - it was more than double the prior 6 hours trading.

The May 50 puts jumped from OI of just 311 to 2,123 yesterday. You can see the Level 2 snap (click to enlarge) - blue is the Open Interest.



The Optins Tab snap illustrates that the May 50 puts OI is the largest in the entire chain - and it accumulated in one day (click to enlarge).



Note also that the Mar 42.5 and 37.5 puts are the other largest open interest lines. Feels like someone knew that bad news was on the horizon... Or not?...

This is trade analysis, not a recommendation.

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