Leucadia National fka LUK

[Investorman]

Options update---

Leucadia National Corp. (LUK) – The company has a diversity of operations from manufacturing to lending and includes medical product development. We see no reason in the news that this company is on our market scanners today other than the 15.75% share price decline to $23.50 has created heavy demand for put options. In the November contract buyers paid 3.20 premium to secure the right to sell the shares at the 25 strike by expiration. Since these were bought the puts are deeper in the money and premiums are rising fast. In the January contract there was demand for around 1,000 puts at a premium of around 1.0 indicating that buyers see significant further downside in the stock. In both cases the positions initiated today far exceed the current open interest at the strike prices.