SolarWinds has been lagging, and one investor is bracing for
optionMONSTER's Depth Charge tracking program detected the sale of
1,300 June 45 puts for $1.30 and the purchase of an equal number of
September 45 puts for $2.80. Volume was below open interest in the
June contracts, indicating that an existing position was closed and
rolled forward in time.
The transaction cost $1.50 and will provide an additional three
months of downside exposure to the software company. In addition,
adjusting the trade now protected the investor from the quickening
in the shorter-term options as expiration approaches on June 21.
SWI rose 1.05 percent to $51.12 yesterday. While the stock roughly
tripled between September 2011 and September 2012, it's lagged the
broader market since and is down 2 percent so far this year as
earnings beat expectations by narrower margins. The next quarterly
report is scheduled for after the closing bell on April 30.
Total option volume was 7 times greater than average in the
session, according to the Depth Charge. Puts accounted for almost
four-fifths of the activity.
Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.