Stock Market Movers: CVS Caremark, Fuel Systems Solutions, American Eagle Outfitters

CVS - CVS Caremark Corp. - Shares of the pharmacy retail chain are trading nearly 20% lower this morning to $29.00 after the company stated its Caremark pharmacy benefits management unit lost $2 billion in business in the past few months. The stock plummeted despite the fact that CVS posted a 39% increase in third-quarter profits this morning. Option traders exchanged more than 56,000 contracts on the stock within the first 30 minutes of the trading session. Fresh positions were taken in both calls and puts in the November contract. Nearly 10,000 put options traded at the November 27.5 strike. Perhaps investors expect shares to surrender another 5% by expiration.

FSYS - Fuel Systems Solutions, Inc. - The supplier of fuel components and systems enjoyed a 24% rally in shares to reach a new 52-week high of $41.94 this morning after posting better-than-expected third-quarter profits. FSYS reported earnings of 88 cents per share, which smashed average analyst expectations of just 43 cents per share. The firm also raised its revenue forecast range from previous estimates of $370-$380 million to $415-$425 million for fiscal year 2009. Fresh call action appeared at the November 45 strike. Option implied volatility imploded following earnings. Volatility sunk 26% from yesterday’s closing value of 85% to an intraday low of 63%.

AEO - American Eagle Outfitters, Inc. - Shares of teen clothing retailer, American Eagle Outfitters, fell more than 12% in early morning trading to $15.68. Analysts were expecting a 1.7% increase in same-store sales for the third-quarter but the firm actually reported that sales fell 5% in the quarter. Bearish investors exchanged more than 3.5 put options on the stock for each call option in play. Option implied volatility is up 9.5% from 52% at the close on Wednesday to stand at the current value of 57%.

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