Heavy Put Activity Seen on Potash (POT) and Baidu (BIDU)

05/12/2009 1:01 pm EST

Focus: STOCKS

Nick Perry

Equity Options Trader, Schaeffer's Investment Research

Baidu, Inc. (BIDU) and Potash Corp. of Saskatchewan (POT) are among the stocks showing a bias toward put buying today.

The activity on Potash Corp. just adds to what we saw yesterday and Friday. A look to the current chart shows the stock is still trying to break out.

All it takes is a quick glance at the daily chart of Baidu, Inc. to see that the put buys could be considered counter-trend sentiment.

The stock has staged a monster rally off its recent lows. The shares are currently showing a near-term pullback from an overbought condition, but clearly, buyers have been willing to aggressively chase the stock.

By Nick Perry of Schaeffer’s Trading Floor Blog

 

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