Finisar has made a nice move, and investors have protection in
optionMONSTER's Depth Charge tracking program detected heavy put
activity in the optical-networking company, which reported strong
earnings and revenue on Sept. 1. Shares jumped on that news have
been grinding sideways since then as they attempt to build support
above the 100-day moving average.
In the first big trade today, a block of 6,000 December 19 puts
were bought for $1.50 and 9,000 November 17 puts were sold for
$0.15. Volume was below open interest in November but not December,
which suggests that an existing protective position was rolled
forward by one month and up by $2. The investor also reduced the
number of contracts.
Less than an hour later, an investor sold 3,000 November 24 calls
for $0.25 and bought 4,000 November 19 puts for $0.50. That trade
appears to be a
modified version of a collar
, a common strategy for protecting a long position in a stock. (See
is down 2.2 percent to $21.32 in late morning trading. It had
traded around $40 earlier in the year before collapsing on a bad
earnings report in March. (See our new
Overall option volume in the name is more than 5 times greater than
average so far today.
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