Bears want to maul Fushi Copperweld
David Russell | firstname.lastname@example.org
optionMONSTER's Depth Charge tracking program detected the purchase of 3,350 April 10 puts on the Beijing-based wire manufacturer for $3.20. Volume was almost 6 times open interest in the strike.
FSIN declined 6.58 percent to $6.58 yesterday. It's been making lower lows and lower highs since the end of January, and the downside has accelerated in the last week. Recent reports have shown relatively weak economic activity in China. Other sectors tied to growth in the country, including coal and copper, have also struggled of late.
The interesting thing about yesterday's trade is that the investor chose deep in-the-money contracts, which will closely track declines in FSIN shares. This suggests that they're being used as a surrogate for shorting the stock and reflects a strongly bearish sentiment. (See our Education section)
Overall option volume in the name was 5 times its daily average yesterday, with puts outnumbering calls by more than 8 to 1.