Traders are bracing for another leg down in Robert Half
International, which reports second-quarter results after the
closing bell today.
optionMONSTER's Depth Charge tracking program showed the purchase
of some 3,200 August 35 puts yesterday, most of which priced in a
single block for $0.95. Volume was more than 100 times previous
open interest at the strike, indicating that new positions were
Puts lock in the price where shares can be sold, letting investors
hedge long positions
in the stock or speculate on a drop. For instance, a decline of 8
percent in shares will double the value of the options by
expiration in mid-August. (See our
section for more the potential of leverage through options.)
RHI fell 1.56 percent to $35.89 yesterday. The staffing company
peaked near $38 in early April, only to drop on a weak profit
report later that month, and again this month after the
implementation of the Affordable Care Act was delayed by a year.
That was perceived to remove a potential catalyst for
Overall option volume was 30 times greater than average in the
session, according to the Depth Charge. Puts accounted for a
bearish 94 percent of the total.
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