Protecting against STEC (NASDAQ: STEC) slide

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Throughout today's trading session, investors bought near-term puts in STEC Corp. (NASDAQ: STEC ) to protect against a slide in the stock ahead of the company's earnings report. More than 6,500 STEC March 13 puts crossed the tape thanks to put buyers who paid roughly $1.19 per contract. Implied volatility of the March 13 puts is currently 95%, compared to a 30-day historical volatility of 73%. STEC is scheduled to announce earnings figures on Feb. 23 after the market closes (analysts estimate earnings of 52 cents a share). STEC shares are currently down nearly 9% on the day to $13.68 following a downgrade to hold from strong buy at Needham. Rumors that EMC Corp. ( EMC ) could acquire STEC surfaced on Feb. 4.



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.



This article appears in: Investing , Options

Referenced Stocks: EMC , STEC

Karla Yeh

Karla Yeh

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