Credit: Shutterstock photoWhirlpool has fallen hard, and one bear is doubling down.
optionMONSTER's Depth Charge monitoring system detected the purchase of about 2,300 November 45 puts for $3.08 to $3.13 and the sale of about 1,0000 October 52.50 puts for $5.57 to $5.61. Volume was below open interest in October but not November, which suggests that an existing position was rolled from one strike to the other.
The investor also increased the number of contracts owned, which significantly increases their leverage to downside in the maker of consumer appliances. The trade cost about $154,000.
WHR is down 3.58 percent to $48.22 and has been getting punished amid economic worries. The shares are down 37 percent in the last three months and are on the verge of breaking a key support level from 2009.
Earnings and revenue both missed forecasts the last time results came out on July 21. Guidance was also poor.
Overall option volume is 3 times greater than average so far today, with puts outnumbering calls by 6 to 1.
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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.
