One big investor remains negative toward Polypore as earnings
optionMONSTER's Depth Charge tracking system detected the purchase
of 2,500 August 35 puts for $2.60 and the sale of 2,476 September
37.50 puts for $4.90. Volume was below open interest in the
September options but not the August contracts, which suggests that
an existing position was closed and rolled to the lower strike.
One unusual thing about the transaction is that the trader moved
the position from the longer-dated contracts to the closer month.
This reflects a belief that a big move is more likely in the near
term and appears to focus on the company's quarterly report after
the bell next Tuesday, July 31.
Earnings at the company, whose filtration technology is used to
make batteries and medical devices, have beaten estimates by
smaller margins in recent quarters. Revenue has also weakened.
PPO enjoyed a huge rally between early 2010 and mid-2011, climbing
from around $12 to above $70. The stock has lost about half its
value since then and is now parked near its 52-week lows. Shares
rose 0.93 percent yesterday to close at $35.94.
Overall option volume in PPO was 10 times greater than average,
with puts outnumbering calls by 18 to 1.
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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