Credit: Shutterstock photoTraders are betting that R.R. Donnelley is done falling.
optionMONSTER's tracking systems detected the sale of almost 6,400 September 14 puts against open interest of 2,269 contracts. Premiums fell from about $0.72 to $0.63 as the transactions crossed, with most of the volume pricing at the lower end of the range.
RRD declined 0.22 percent to $13.89 in late morning trading and has lost more than one-quarter of its value in the last month. The commercial-printing company fell hard on Aug. 3 after revenue lagged estimates, though earnings beat estimates and international demand was strong.
The shares are now attempting to hold above the same $13-$14 level where they peaked in June 2009, which may lead some chart watchers to expect support to form. By selling puts, traders are betting that RRD will hold its ground or push higher. If they're right, the puts will dwindle in value, favoring their short position. (See our Education section)
Overall option volume in RRD is more than 6 times the average amount so far today.
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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.
