Some investors remain cautious in Finisar, which is trying to rally before the release of quarterly results this afternoon.
optionMONSTER's Depth Charge monitoring program detected the purchase of about 4,000 March 15 puts for $0.50 to $0.65. Volume was triple open interest at the strike.
Those buyers now have the right to sell FNSR for $15 in the next week no matter how low it might fall, providing insurance against a near-term drop. The puts appear to have been purchased by investors who own shares in the telecom-gear maker and are looking for protection before today's earnings report. (See our Education section for more on how options can be used to manage trades.)
FNSR is up 5.13 percent to $15.78 in afternoon trading. Shares have been fluctuating in a range for most of the last year.
Almost 7,600 contracts have traded so far today, compared with 628 in a typical session. Puts account for almost two-thirds of the total volume.
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