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July 27, 2012  Fri 2:16 AM CT

AEIS: SEE CHART GET CHAIN FIND STRATEGIES
Advanced Energy Industries has been dropping, and one bear isn't letting go.

optionMONSTER's Depth Charge monitoring program detected the purchase of 2,000 August 12.50 puts for $1.60 and the sale of an equal number of August 15 puts for $3.70. Volume matched open interest in the 15s, indicating that an existing position was rolled from one strike to the other.

The trader is using in-the-money puts to leverage a decline in the company, whose technology is used for solar panels and electronics. He or she apparently made money on the initial bet and adjusted the strategy to recover $2.10 of cash. The trader also increased leverage because much less capital is now at risk. (See our Education section)

AEIS rose 5.08 percent to $11.58 yesterday. The stock rallied 75 percent between October and early this month but stalled at an old support level from last year and has been falling since.

Overall option volume was 16 times greater than average yesterday, according to the Depth Charge. Puts accounted for almost 80 percent of the total.
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Options Academy: Ron's Risk Calculation--A Real Life Example

It is rare that I get a chance to give a real-life, real-time example in my articles that the readers were not only following but were actually involved in at the time the event is happening. Well, that is where we are right now in our QQQ trade from last week. Let's recap the trade itself.

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