Markets

Is Renren finally ready to stop falling?

Traders think Renren's long slide is nearing an end.

optionMONSTER's tracking systems detected the sale of about 5,400 January 3 puts on the Chinese social-networking stock, which has lost more than 80 percent of its value since going public in May. They priced for $0.10 and $0.15, and volume was quadruple existing open interest in the strike.

RENN closed at $3.28 yesterday, down 0.2 percent in the session. Its declines have been slowing since the start of December, which could make some traders think that shares are done falling.

Yesterday's put selling is designed to profit from the stock holding its ground. If it closes above $3 on expiration, the traders will keep the premium and the contracts will expire worthless. (See our Education section)

The activity pushed total option volume in RENN to 4 times greater than average.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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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.

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