Sellers have pounded Fortinet in the last month, and sentiment
toward the name remains wary.
optionMONSTER's tracking systems detected the purchase of about
4,000 June 21 puts for approximately $1.05. A matching number of
June 23 puts were sold at the same time for $2, but volume was
below previous open interest in the strike.
This suggests that an existing position in the 23s was closed and
rolled down by $2. The investor collected a credit of about $0.95
in the process and can still profit from further downside in the
software company, whose products are used to secure network
FTNT rose 2.76 percent to $23.06 yesterday but has lost 15 percent
of its value in the last month. The company's results have mostly
been strong in recent quarters as bookings grow. (See
Yesterday's put roll was probably the work of an investor who owns
shares and is using the puts as
. Rolling the position allowed them to recover some of their
capital while keeping them hedged against further drops.
Overall option volume was 15 times greater than average in the
session, with put outnumbering calls by 2 to 1.
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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