Put seller bets on floor beneath Polypore


Shutterstock photo

Polypore has been stabilizing after a long pullback, and traders apparently think that it's finally at a bottom.

optionMONSTER's tracking programs detected the sale of about 2,000 June 32.50 puts in the maker of filtration systems for $0.70 to $0.80. Volume was more than 40 times previous open interest in the strike.

The trader is now obligated to buy PPO shares for $32.50 if they close below that level 3-1/2 weeks from now. If they remain above it, the puts will expire worthless and he or she will keep the credit as profit.

PPO rose 0.68 percent to $36.92 yesterday. The stock rallied more than 2,000 percent between March 2009 and last summer but was then cut in half, and shares have been basing since March while staying above $32.50. Traders may believe that it will remain above that level, which would help explain the put sale . (See our Education section)

Overall option volume was 5 times greater than average in the session.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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

This article appears in: Investing , Options

More from optionMONSTER




Follow on:

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by BankRate.com