Tempur-Pedic has had a pullback, and one trader is adjusting a
optionMONSTER's Depth Charge tracking system detected the
purchase of 5,000 September 60 puts for $5.15. An equal number of
December 70 puts were sold at the same time for $13.10 against
existing open interest.
TPX fell 0.65 percent to $59.24 yesterday. The mattress stock
more than doubled between last summer and mid-May amid strong
demand in North America, leading it to issue bullish guidance at
least twice so far this year.
In the last month, however, it's been drifting lower. It
appears that yesterday's option trade resulted from an investor
closing a previous holding in the December contracts. He or she
then rolled it to the September expiration, producing a credit of
The activity was unusual because options are typically rolled
forward in time rather than backward. In this case, it appears
that they have now reduced the amount of time they plan to hold
Overall option volume was 12 times greater than average, with
puts outnumbering calls by 28 to 1.
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