One investor likes Garmin and is using puts to navigate the
optionMONSTER's tracking programs detected the sale of more than
2,000 June 40 puts for $0.54 to $0.56. Volume is more than 14 times
previous open interest at the strike.
The investor is now obligated to buy shares for $40 if they close
below that level on expiration this Friday. If they remain above
it, he or she will keep the credit as profit.
GRMN is down 3.54 percent to $40.29 in morning trading. The
global-positioning system company leapt to a four-year high over
$50 after a strong earnings report last month but has been drifting
lower since then. The shares are now back to their 200-day moving
average, which could be leading some chart watchers to think that
they will find support.
One potential concern is a report that Apple plans to start
competing with the company's turn-by-turn navigation service.
The current price range is also the same area where GRMN
consolidated for more than a week in late December. Another
will accelerate in those contracts with expiration next week. (See
Overall option volume in GRMN is almost quadruple the daily average
so far in the session.
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.
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