Scream Toyota: Here come the Shorts (TM)

Toyota Motor's (NYSE:TM) next big worry? Try short interest and increasing put positions, despite how consumers may be reacting to the company, there's the worry of what will Wall Street do?
Wall Street is already moving on this, traders were busy shorting Toyota today with a fear of death on their faces.

(Forbes.com) Option traders accelerated bearish moves on Toyota Wednesday by scooping up put options in the February contract. Investors bought more than 1,100 puts at the February $60 strike for an average premium of $0.22 apiece. Another 2,000 puts were picked up at the higher February $65 strike for about $0.55 each, where option volume exceeds 5,000 contracts on paltry previously existing open interest of 790 lots at that strike.

Put volume tipped the scales at the February $70 strike as investors exchanged more than 11,000 contracts by midday on the East coast. It looks like at least 4,400 of the puts at the February $70 strike were purchased for an average premium of $1.57 each. The buying interest at that strike indicates traders are positioning for another 5.50% decline in Toyota's shares to the breakeven price of $68.42 ahead of expiration. Options implied volatility is up sharply as swirling bad news boosts investor uncertainty. Volatility is currently up 24.28% to 42.66%, the highest reading since May of 2009.

The action on the Toyota (TM) $65 and $70 Puts were out-of-control today, see for yourself: