NetApp sees nervous trade amid struggles
David Russell | email@example.com
optionMONSTER's Depth Charge tracking program detected the purchase of about 4,700 May 39 puts for $0.58 and the sale of an equal number of May 40 puts for $0.90. Volume was below open interest in the 40s, which suggests an existing position was rolled from one contract to the other.
The investor collected a credit of $0.32 in the process, and remains exposed to further downside in the data-center stock. He or she probably bought the puts when the shares were higher and is now adjusting the position to get back some of their capital. (See our Education section)
NTAP is down 2.24 percent to $39.77 in afternoon trading and has fallen more than 20 percent in the last year, with most of that drop occurring last summer. The company has struggled since then against weak public-sector demand, rising hard drive costs and changes in senior management.
It's now attempting to hold its ground against a sharply declining 200-day moving average. The last earnings report was also better than expected. (See researchLAB for more)
Overall option volume is quadruple the daily average so far today.