Lockheed Bearish Options Hit Record Before COO Scandal
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Bearish options trading on Lockheed Martin Corp. surged to a record on Nov. 9 hours before the biggest defense contractor said its incoming chief executive officer resigned because of a relationship with a subordinate.
About 57,000 puts changed hands on Nov. 9, the most in data compiled by Bloomberg that goes back to 1995. That compares with daily average volume of 940 bearish contracts in 2012. Most of the trading took place around 2 p.m. before the company said Christopher E. Kubasik, the chief operating officer who was slated to become CEO on Jan. 1, left after a probe confirmed a “lengthy, close and personal relationship.”