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.
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