Options trading hedge fund
NEW YORK Hedge fund managers trading ideas at the Sohn Investment Conference on Wednesday spurred a flurry of activity in the options market in select stocks, as traders jockeyed to take advantage of the potentially profitable tips mentioned at the annual assemblage. Options on a number of stocks saw a bump in trading volume on Wednesday as fund managers touted their long and short investment picks. The spike in options activity was particularly noticeable for stocks whose options are usually lightly traded, including Bank Of The Ozarks Inc OZRK.
O and Kraton Performance Polymers Inc KRA. Shares of Bank Of The Ozarks fell 15 percent after Muddy Waters' Carson Block revealed a new short position and said the Little Rock, Arkansas-based bank was making outsized loans relative to its assets and was too heavily concentrated in real estate lending.
The shares later regained some ground to trade down 4 percent. Trading in the bank's options soared to 4, contracts, about 14 times the average daily volume, as traders loaded up on bearish bets. Options volume on Kraton Performance Polymers was similarly high, but on bullish bets, after Rubric Capital Management portfolio manager David Rosen pitched the stock to investors.
Options volume spiked to 3, contracts, eight times what is normal. N was also bigger-than-usual, and trading sentiment leaned bullish, according to options analytics firm Trade Alert data.
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Hedge fund billionaire investor Larry Robbins said he is positive on the health insurer and views it as a valuable asset because of its Cigna acquisition. Options on Alibaba Group Holding Ltd BABA. N were unusually active with , contracts traded, or three times what is normal, in mixed trading.
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Kynikos Associates founder James Chanos said his firm is still short the Chinese e-commerce company. However, with Alibaba set to report quarterly results on Thursday, it was not clear whether the bump in options activity was due to Chanos' comments or in anticipation of the earnings announcement.
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Pictures Home The Wider Image Photographers Focus Hedge-fund event stirs up options trading in select names. Business News Wed May 4, 4: By Saqib Iqbal Ahmed NEW YORK.
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