CommVault Systems has been climbing for two months, and one
investor apparently thinks that it may pull back.
optionMONSTER's Depth Charge tracking system detected the purchase
of about 2,000 November 43 puts for $3 and the sale of an equal
number of November 40 puts for $1.50. Volume was above open
interest in the higher strike, but about the same as open interest
in the lower strike.
That points to two possible explanations. One is that an existing
was rolled higher by $3 as a shareholder sought a tighter hedge on
their position in the stock. The second is that both the 40s and
43s were opened, in which case it was a
bearish put spread
designed to leverage a drop to $40.
Regardless, both explanations cost $1.50 and reflect a desire to
guard against a move lower. (See our
CVLT is down 0.98 percent to $42.33 in morning trading and is up
more than 30 percent since late August. The provider of
data-management products has enjoyed strong demand as corporate
CommVault beat forecasts on the top and bottom lines the last time
results came out on Aug. 2. The next earnings report is scheduled
for the morning of Nov. 1.
Overall option volume is 6 times greater than average in the stock
so far today, with puts outnumbering calls by 47 to 1, according to
the Depth Charge.
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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