Fusion-IO draws downside position
Chris McKhann | firstname.lastname@example.org
optionMONSTER's Depth Charge system shows that a put spread makes up most of the 7,000 FIO options that trade. A trader sold 2,000 March 19 puts for the bid price of $2.25 against open interest of 2,905. A few minutes later a block of 3,100 March 17 puts was bought for the ask price of $0.95 in volume that was above the previous open interest of 1,121, so that is a new position.
This appears to be a trader is rolling a position lower, selling the in-the-money March 19 puts and buying more of the at-the-money March 17 puts for further downside exposure while taking some money off the table. (See our Education section)
FIO is down 1.74 percent to $16.95, which would be a new closing low. Shares gapped down from $20 at the end of last month on earnings and have lost half of their value since early October.