Massive Delta Neutral Position Signals Bearishness at Jacobs Engineering Group

  Today’s tickers: JEC, GLW, TM & AKS JEC  - Jacobs Engineering Group, Inc. –  The third-largest listed U.S. engineering company popped up on our scanners today after one option strategist initiated a big delta neutral position using a large number of long-dated, in-the-money put options tied to more than 1 million shares of the underlying stock. Shares in Jacobs Engineering Group increased as much as 7.3% during the first half of the session to secure a new 2-year high of $53.10. JEC reported weaker-than-expected first-quarter results before the market opened on Tuesday, but increased earnings guidance for the full year. A spate of target share price increases and ratings upgrades from a number of analysts helped shares in Jacobs Engineering higher today. The investor responsible for nearly all of the volume in options traded on JEC today seems to be taking a contrarian view on the stock, positioning for bearish movement in the price of the underlying, while not entirely standing in the way of the rally or bullish sentiment. The trader appears to have shelled out a total of $67.127 million ($11 million for the puts, $56.127 million for the stock) to purchase 1,060,000 shares of the underlying at $52.95 each, and 20,000 in-the-money put options at the July $55 strike for a premium of $5.50 apiece on a 0.53 delta. The position may work in the investor’s favor if shares move sufficiently higher or if shares fall, however, the potential for the greatest gains lies to the downside because the value of the puts will grow much more quickly and offset any losses incurred on the decline in share price. Shares in JEC are soaring at their highest in two years but this put player is prepared to make out handsomely if the good times should come to an end. GLW  - Corning Inc. –  Bullish options traders are dominating the scene at Corning this morning with shares in the glass maker now extending gains realized after the firm’s earnings report on Tuesday. Corning’s…
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