Big Blocks of Puts Bought in CEMEX, S.A.B. de C.V. (CX)

CEMEX, S.A.B. de C.V. (CX) is a Mexico based producer and distributor of ready-mix concrete solutions and other associated construction products. At the time of this post (11:50AM CST), CX is currently trading down 3.04% on the day, to 9.88. The stock has been trending extremely bearishly over the last month and a half and is now just $0.20 off the 52 week lows.

Earlier this morning at approximately 10:22AM CST, we detected and flagged some unusually large bearish options activity as 3,474 of the Feb ’15 10.0 puts went off at the ask for a cost of $0.65 per contract. Moments later, at 10:36AM CST, another large block buy of 2,809 contracts again lifted the offer at $0.65. The open interest in this option going into today’s session was a very modest 354, so we can confidently surmise that both of these large block purchases were opening transactions looking for further downside in the stock. With a total cash outlay of approximately $408,395 before commissions, it appears a confident trader is looking for a continued push lower, through 52 week lows going into the February monthly options expiration on February 20th 2015.

Trade: A trader bought 3,474 CX Feb 10 Puts for $0.65
Risk: $65 per 1 lot
Breakeven: $9.35