At the close today, the aggregated open interest of the Feb 26 through 35 strike price saw 31,007 contracts on the call side with 39,632 on the put side. The heaviest concentration around the 30 - naturally.
Focusing on today's action only, a whopping 14,241 calls were purchased vs. 7,398 puts for the same strikes mentioned above.
What does it all mean? I have no idea. Do the purchasers of the 14,241 calls know something or are they playing the recent momentum?
I will say this, based on ConEd's performance, mediocre or poor results combined with a 25% or more dividend cut could very well be cause for a sharp sell off. I would imagine this is exactly what those 39,632 put holders are praying for.
To me it means that someone thinks that EXC will report better than expected results. Also I think the divi will be cut but not as much as analysts are projecting, $1.20. I am hoping for around $1.50. Considering how much EXC has dropped in such a short period of time I would not be suprised to see a rally if both earnings and dividend are more than analysts are expecting. I would say that the high side would be somewhere around $37 and low $34. If they earn below what analysts expect and cut the divi more then a sell off could happen, one cavate would be future projections. I would say a low price of $27 if things a bad.