Anyone have insight on LDK and options?

Discussion in 'Options' started by JJacksET4, Aug 24, 2011.

  1. I was looking at some solar plays such as STP and LDK and LDK has huge premiums for puts. The implied vols are through the roof for options such as the 4 strike put for Jan 2012 (200+ IV). The calls are much lower IV.

    I wonder if I am missing something that people who watch this stock are aware of or what - is there some large one time dividend coming that will hit the stock before that time, or is everyone just panicked about the stock going to 0 or something?

    I mean $177-189 for a 4 strike put on a stock currently at $5.94? There seems to be enough volume, OI, etc.

    It seems a bit extreme. If it is just general trading risk, I might go ahead and sell some of those puts and buy the stock for $2.20 or so if need be, but I'm just worried I'm overlooking something obvious since I have only watched the stock for a few days.


  2. rmorse

    rmorse ET Sponsor

  3. Stock on hard to borrow list.

    Borrow rate 80+ % today
  4. tons of stocks skewed that way on sick borrow rates.

    not to mention the spreads