Credit: Shutterstock photoAshland has gotten crushed along with most other stocks, and one protection seller wants more time for the shares to bottom.
optionMONSTER's tracking systems detected the purchase of about 1,000 October 45 puts for $2.30, but volume was below existing open interest. An equal number of January 40 puts was sold for $2.30 and $2.35 at the same time, which suggests that an existing short position was rolled to the lower strike.
The investor had probably sold the October puts in recent days, looking for the maker of specialty chemicals to hold its ground. When ASH pushed lower, he or she then apparently adjusted the position by extending it into the future by three months.
ASH fell 7.42 percent to $49.31 yesterday and has lost 23 percent of its value in the last month. Price increases let the company report better-than-expected earnings and revenue the last time results were issued on July 28. Its products include adhesives, coatings, and lubricants.
The stock has now returned to the bottom of its price range from late 2010, which could leader some chart watchers to expect support to form.
Overall option volume was 7 times greater than average in the name.
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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.
