News of an explosion is a Mariner Energy-owned platform in the Gulf of Mexico sent shares of the Oil and Natural Gas Production company into free fall earlier in the session and pushed options implied volatility on the stock to the Highest level in at least that many a year. ME's shares Fell 16% in the span of Approximately 15 minutes before recovering the Majority of the respondents hmmmm losses in the 45 minutes That Followed. Reports of the explosion incited frenzied activity options on the stock as investors seemed Thurs expect the worst case scenario was upon Them while the all-too-Recent memories of BP (BP - news - people) 's disaster Came Thurs mind. Options implied volatility on the stock shot up as much as 241.5% from a reading of 22.37% before news of the explosion and Touched hit a high of 76.40% post-explosion data. Put options Flew off the shelves and Overall options volume surged Thurs 46.000 Previously Existing Contracts versus open interest of just 6.547 lots.
Mariner puts at the September $ 20 strike Received the most traffic as more than just 21.000 lots changed hands there by 1:15 pm Investors Appear to Be Equal "Selling and buying Amounts of the September $ 20 puts at an average premium of $ 0.86 each. Some of the 9.200 Sold puts at strike That May be the work of ditching Traders puts They Purchased while in panic-mode earlier in the session. Premium is the September $ 20 strike puts surged to a high of $ 4.30 EACH "when ME's shares were trading at Their Lowest price of the mini-Crisis. If Traders Purchased the puts at $ 4.30 They'd now only $ 0.40 Receive Fri contract by Selling Them just a couple of hours later. Traders Also picked up roughly 2.400 puts at the Higher September $ 22.5 strike for an average premium of $ 1.28 apiece. It'll be interesting to see how options trading on the stock will play out as more and more information about the explosion and Its Potential Consequences for Mariner Energy are Revealed.
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