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May 9, 2013  Thu 3:47 AM CT

LAMR: SEE CHART GET CHAIN FIND STRATEGIES
Lamar Advertising is back to potential resistance, and the bears are stepping in.

optionMONSTER's Depth Charge monitoring system detected the purchase of about 10,000 July 45 puts for $1.50 and the sale of an equal number of July 38 puts for $0.30. Volume was more than 70 times open interest at each strike, clearly showing that this is new activity.

The trade cost $1.20 and will earn a maximum profit of 483 percent if LAMR closes at or below $38 on expiration. It could be the work of an investor looking to hedge a long position in the billboard company or a bear placing a speculative downside bet. (See our Education section for more on the strategy, which is known as a bearish put spread.)

LAMR fell 1.26 percent to $47.99 yesterday but is up almost 80 percent in the last year. It's now back around the same level that was support for much of 2007 before the stock began a violent decline into single digits. That could be leading some chart watchers to expect resistance to form.

The company also reported quarterly results that were in line with estimates and is awaiting a ruling from the government on becoming a real-estate investment trust.

Total option volume was 25 times greater than average in the session, according to the Depth Charge, with puts dominating the activity.
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