Bears showing no mercy for Finisar

By
A A A
Share |

Finisar has been a punching bag for the bears, and now they're taking out the brass knuckles.

The maker of telecom-networking gear traded over $40 in early March, only to crater after management warned of inventory gluts. Earlier this week it bucked that downtrend and attempted to push back above its 50-day moving average but ran into a wave of selling pressure before closing down 9.64 percent at $18.46.

In Finisar's largest option trade yesterday, an investor purchased about 6,000 August 18 puts for $0.64 and sold an equal number of August 16 puts for $0.16, according to our Depth Charge tracking system. This bearish put spread cost about $0.48 and will earn a maximum profit of 317 percent if FNSR closes at or below $16 on expiration. (See our Education section)

The company reported more bad numbers on June 15, when revenue and guidance were worse than expected.

Overall option volume in the name was 8 times greater than average yesterday, with puts outnumbering calls by 8 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.

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.


This article appears in: Investing , Options

Referenced Stocks: FNSR

optionMONSTER

optionMONSTER

More from optionMONSTER:

Related Videos

Stocks

Referenced

Most Active by Volume

127,336,824
  • $16.015 ▼ 2.29%
66,997,741
  • $59.2568 ▲ 0.28%
50,528,795
  • $36.2301 ▲ 5.90%
42,813,346
  • $26.80 ▲ 0.11%
39,439,188
  • $3.16 ▲ 2.27%
32,898,580
  • $85.81 ▲ 0.89%
30,152,436
  • $13.36 ▲ 2.38%
22,503,036
  • $29.96 ▲ 0.23%
As of 4/16/2014, 03:02 PM