Investors are nervous about NetApp, which has languished for
more than a year.
optionMONSTER's Depth Charge tracking program detected the purchase
of about 4,700 May 39 puts for $0.58 and the sale of an equal
number of May 40 puts for $0.90. Volume was below open interest in
the 40s, which suggests an existing position was rolled from one
contract to the other.
The investor collected a credit of $0.32 in the process, and
remains exposed to further downside in the data-center stock. He or
she probably bought the puts when the shares were higher and is now
adjusting the position to get back some of their capital. (See our
NTAP is down 2.24 percent to $39.77 in afternoon trading and has
fallen more than 20 percent in the last year, with most of that
drop occurring last summer. The company has struggled since then
against weak public-sector demand, rising hard drive costs and
changes in senior management.
It's now attempting to hold its ground against a sharply declining
200-day moving average. The last earnings report was also better
than expected. (See
Overall option volume is quadruple the daily average so far
Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.