CACI International has been getting destroyed for the last month, and the bears are looking for more bloodshed.
optionMONSTER's Depth Charge tracking system detected the purchase if 3,500 August 55 puts for $1.80 to $2.20, with premiums rising as the stock pushed lower. Some 2,500 September 60 puts were sold at the same time that for $5.90 against, though volume was below open interest.
That suggests an existing position in the longer-dated contracts was closed and rolled to the front month, which reflects a belief that downside will intensify in the short run. The trade was probably the work of a bear who expects bad news when the company reports earnings before the bell on Aug. 18--one day before the puts expire.
CACI is down 3.84 percent to $53.82 in afternoon trading and has lost 18 percent of its value since July 7, when it hit an all-time high over $66. While there has been no obvious news on the company, which provides IT services to the federal government, shares have been falling as politicians in Washington look to cut government spending.
Given the company's reliance on the public sector, some traders may expect bad news when its earnings results come out later this month.
Overall option volume in the name is 30 times greater than average, with puts outnumbering calls by 318 to 1.
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