No relief in sight for beaten-down Sony
David Russell | firstname.lastname@example.org
optionMONSTER's Depth Charge monitoring program detected the purchase of more than 2,100 October 13 puts, most of which priced for $1.40. Volume was more than 60 to 1.
SNE is down 3.13 percent to $13.33 today and has lost more than 40 percent of its value since the beginning of March. Investors have been draining capital from the once-mighty electronics giant as years of mounting competition devour its market position. Every financial headline since last summer has been negative, with profit missing expectations or guidance getting lowered.
Today's decline brings SNE to its lowest level since at least 1992. Based on the put buying, investors apparently believe that it will continue to drop. The trade could also benefit from an increase of implied volatility, which often occurs as selling pressures intensify. (See our Education section)
Overall option volume in the name is more than triple the daily average so far today, according to the Depth Charge.