YRC Worldwide (YRCW) Jan 1 put is the most actively traded equity options contract early Thursday. 17K now traded. Shares hit a low of 91 cents per share, but are flat at 99 cents after the company announced that it reached thresholds in its debt-to-equity exchange offer. Recall that yesterday, Jan and Feb 1 puts saw heavy trading (and increases in open interest of 24.7K and 14.6K, respectively) after the company extended its debt-to-equity swap until midnight. Now, some investors might be liquidating the puts on diminishing bankruptcy fears following today’s news
YRC Worldwide Inc. (YRCW, $0.89, -$0.10, -10.17%) reached its goals in the 11th hour to complete its debt-for-equity swap, allowing the trucking company to defer payments coming due. Its shares tumbled as the deal will heavily dilute shareholders. Shares of competitors also slipped on the news, including Old Dominion Freight Line Inc. (ODFL, $30.79, -$2.65, -7.92%), Con-Way Inc. (CNW, $35.64, -$3.07, -7.93%), Arkansas Best Corp. (ABFS, $30.00, -$2.82, -8.59%), Landstar System Inc. (LSTR, $38.83, -$0.82, -2.07%), SAIA Inc. (SAIA, $14.94, -$1.29, -7.95%) and Knight Transport Inc. (KNX, $19.41, -$0.32, -1.62%). Analysts had expected the rivals to pick up the extra business created by a potential YRC bankruptcy.
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