BB&T Corporation Falls Off a Cliff, Puts Active (BBT)

Shares of BB&T Corporation (BBT) are trading lower on the session by 1.12%, at $29.04. Today’s action is just a taste of the carnage we have seen in the name over the past few weeks; BBT was trading at $34.37 one month ago.

Puts are active on BBT today as shares edge closer to the $27.40 support level. A short while ago the December $26.00 put was purchased 3,250 times, on the offer, for $0.21. Open interest on the strike is only 482 contracts, indicating new positioning. Note that a second block of 3,250 puts traded for $0.23 was just canceled.   

Today’s put action is another brick in the bear wall. On October 18^th 1,600 November $32.00 puts were bought for $1.60 (rolled from the Oct $32 strike). On Oct 17^th the November $30.00 put was purchased 1,600 times for $0.19 (rolled from the Oct $31 strike). On Oct 11^th the March 2013 $33.00 put was purchased 2,070 times for $1.88. You get the idea…

30-day implied volatility is popping 9.1% today to 21.65%; 10-day historical vol is registering 38.25%.

BB&T Corporation is a financial holding company. BB&T conducts its business operations through its commercial bank subsidiary, Branch Banking and Trust Company.

About Michael Zerinskas

Originally from Chicago, Michael J. Zerinskas began his career as an intern for a small high-frequency trading firm based at the CME; he then moved on to become Chief Options Strategist at Benzinga.com. Michael is now Unusual Activity Editor at The Options Insider, specializing in VIX, volatility, and flagging unusual activity.