IEP – Icahn Enterprises L.P. – Shares in Icahn Enterprises fell 10% to $133.67 on Tuesday morning after the company yesterday announced the sale of 2,000,000 depositary units. Shares in IEP yesterday rose to an all-time high of $149.77.
The sizable move in the price of the underlying sparked heavier than usual options activity on the stock today, with overall volume approaching 5,000 contracts as of 11:20 a.m. EST versus average daily options volume of around 1,400 contracts. The largest increase in open interest in IEP options overnight was in the Dec $145 strike put options, with open interest rising by approximately 500 contracts. Looking at time and sales data, it looks like one strategist purchased 400 of the $145 strike puts in the last 10 minutes of the trading sessions yesterday at a premium of $3.10 each.
The sharp drop in shares of Icahn Enterprises now finds the Dec $145 strike puts changing hands at $10.30 each just before 11:30 a.m. EST, roughly tripling the value of the position overnight.
