Article: Schaeffer's Options Update: Short Strangling ATP Oil & Gas Corp.

CINCINNATI -- ATP Oil & Gas Corp. (NASDAQ: ATPG) cut its third-quarter production outlook and announced an offering of 5.3 million common shares at $18.50 each yesterday. The stock fell 16% yesterday following the lowered production outlook, and ATPG is down another 5% in today's trading following last night's share offering announcement. Not wanting to miss out on this opportunity, options traders swamped the security today, as more than 7,800 puts and 8,500 calls have changed hands on the equity, tripling the stock's average daily call volume and quintupling its average put volume.

The most actively traded options have been the November 17.50 put and the ...

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