Eastman Kodak Tanks
November 17, 2011 3:54 PM
Shares of Eastman Kodak (NYSE: EK) are trading lower on the session by 7.87%, at $1.17. The stock has been ticker higher and higher throughout the session, touching an intra-day high of $1.38, but has been smacking into negative territory within the last hour.
The stock's chart is now in risk of forming a high volume top; the cherry on top would be that the top is occurring on the 20-day moving average (resistance). If shares we to continue lower and close at new daily lows (below $1.15), shorts could stomp on the gas pedal and accelerate this lower.
Note that Eastman Kodak has 25.32% short interest.
Options traders should take a look at the Jan2012 $1.00 put, which is trading for $0.21, at $0.24. This would be a nominally cheap way to expose your portfolio to increased volatility and downside movements in the name.
More advantaged traders could actually look to buy shares against the position in a delta neutral fashion and readjust periodically.
Eastman Kodak Company is engaged in the sale of imaging products, technology, solutions and services to consumers, businesses and professionals. Kodak operates in three segments: Consumer Digital Imaging Group, Graphic Communications Group and Film, Photofinishing and Entertainment Group.
