Credit: Shutterstock photoThe bears are hungry for SAP's hide.
optionMONSTER's Depth Charge tracking system detected the purchase of more than 12,000 August 50 puts, most of which priced for $1.35 to $1.45. The bulk of the activity occurred between about 2 p.m. and 3:10 p.m. ET yesterday when the German software giant was near its highs on the session.
Shares then plunged into the close, ending down 7.73 percent to $50.01. Those same puts gained more than 30 percent in the final 50 minutes of trading.
SAP has mostly lagged other software companies recently, though its last earnings report on July 26 came in slightly ahead of consensus. Nonetheless, sellers pounded the stock the next day, and it's now back near its trading range from last year.
Overall option volume in the stock was 6 times greater than average in the session, with puts outnumbering calls by 70 to 1.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
