Sensata Technologies has fallen hard, and one bear is looking
for more downside.
optionMONSTER's Depth Charge tracking system detected the purchase
of 1,000 November 20 puts for $1.15. An equal number of October 30
puts was sold at the same time for $4.40, but volume was below open
That suggests that an investor made money on the October contracts
and now is selling them and rolling down to the November 20s. The
strategy let him or her collect $3.25 of income and provided an
additional month of downside exposure. (See our
ST is down 2.04 percent to $25.92 and is sitting at its lowest
price since last November. The maker of sensors used in aircraft
and motors has been falling hard, falling more than 30 percent in
the last three months despite a strong earnings report on July 20.
Overall option volume is 10 times greater than average today, with
puts outnumbering calls by more than 100 to 1.