FTI Consulting has been falling steadily, and the bears are
upping the ante.
optionMONSTER's Depth Charge monitoring program detected the
purchase of 2,000 March 25 puts for $2 and the sale of an equal
number of September 35 puts for $8.30. Volume was below open
interest in the 35s but not the 25s, which suggests that an
existing bearish trade was closed and rolled to the lower strike.
The investor collected a credit of $1.36 million and increased the
number of contracts owned, which will provide more leverage to a
decline in the share price. The longer time horizon also positions
them to benefit from a potential volatility spike, something that
often happens when a stock is falling.
FCN rose 2.14 percent to $26.68 yesterday. The business-services
stock has been steadily falling since early February, when is
peaked at $45. It's been rebounding since early this month, and has
now returned to its 50-day moving average. Some chart watchers may
interpret that price action as evidence the shares are due for
another push to the downside.
Overall option volume was 19 times greater than average in
Tuesday's session, according to Depth Charge. Puts accounted for
almost three-quarters of the activity.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.
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