Gulf Resources Inc( NASDAQ: GFRE ) slumped 35 % to $2.46 without any specific news

Gulf Resources
Gulf Resources Inc ( NASDAQ: GFRE ), China's leading bromine producer and distributor, stock of the company slumped today 35 % to $2.46 and  touched a 52 week low today, with abnormally high volume There is no any specific announcement about the company, but it might be underway. Some development should come out of it. Traders have started shorting the shares.

Meanwhile, overall option volume has accelerated to four times the usual level on GFRE, with roughly 5,065 calls and 3,692 puts crossing the tape at last check. The most active strike is the May 2.50 put, where 2,094 contracts have been exchanged. The majority of these puts traded near the ask price, and implied volatility on the option has jumped 23.3 percentage points -- indicating these out-of-the-money puts were probably purchased.

Given GFRE's technical free-fall, this rising tide of pessimism isn't too shocking. GFRE has shed about 61% of its value in 2011, and tumbled to a new all-time nadir of $2.30 today.
Tags: ,

About author

Make it happen !!

0 comments

Leave a Reply