More losses seen for Select Comfort
Chris McKhann | email@example.com
optionMONSTER's Depth Charge system shows that 3,000 December 24 puts were sold for $5.20 against open interest of 5,419 contracts today. Just after, our scanners detected the purchase of 3,000 December 20 puts for $2 against open interest of just 341 at that strike.
The trader appears to be rolling a put position lower in what is likely an outright bearish play rather than a hedge, given that he or she is moving to a strike that is still in the money. So the trader is taking profits off the table while still benefiting from further potential downside. (See our Education section)
SCSS is down 1 percent to $18.81 in early afternoon trading. The mattress maker gapped down from above $24 after announcing quarterly results on Oct. 16.
More than 9,100 SCSS options have changed hands, well while the daily average is less than 2,000 over the last month.