BUZZ-FDA statement on nicotine lights up bearish options trades

** Option (Frankfurt: OINA.F - news) trading volume heats up on major tobacco cos as their shares fall after the U.S. Food and Drug Administration took aim at cigarette nicotine levels

** FDA aims to reduce nicotine levels in cigarettes according to a new regulatory program announced by Commissioner Scott Gottlieb on Fri

** Altria hit hardest; options volume at 51k contracts, or 9x the daily avg, per Trade alert

** MO 30-day implied volatility jumps to 30.5 pct, the highest in at least two years, per Trade Alert

** MO Sept 72.5 puts the most actively traded contract

** Philip Morris and British American Tobacco (Kuala Lumpur: 4162.KL - news) 's U.S.-listed shares also draw bearish activity

** Altria shares down 10.9 pct Fri, Philip Morris shares down 0.9 pct, British American Tobacco's U.S.-listed shares down 9 pct