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June 13, 2013  Thu 3:47 AM CT

FIO: SEE CHART GET CHAIN FIND STRATEGIES
Fusion-IO has been on a wild ride in recent months, but one trader is betting that any downside will be limited through early next year.

optionMONSTER systems detected the sale of 5,150 January 12 puts for the bid price of $1.55 yesterday. The volume was 10 times the strike's previous open interest, so this is clearly a new position.

The put seller is betting that FIO will remain above $12 before the options expire in mid-January. If the stock falls below that level, the trader will face the obligation to buy shares at an effective price of $10.45 once the credit from the put sale is included. (See our Education section)

FIO fell 3.32 percent to close at $13.98 yesterday. The data-storage maker gapped higher on strong quarterly numbers and guidance on April 25 but then gapped back down by an even larger margin less than two weeks later when its CEO and a co-founder suddenly resigned. The stock was above $19 at the end of April but posted a closing low of $13.35 on May 23.

Our systems show that 9,274 FIO options changed hands yesterday, twice the daily average over the last month. 
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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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