Market News

October 12, 2016  Wed 5:16 AM CT

A trader apparently believes that SolarEdge Technologies may continue is recent downtrend.

optionMONSTER's tracking program detected the sale of 2,000 November 16 puts for $1.65 and the purchase of 2,000 November 14 puts for $0.80 yesterday. Volume was below open interest in the higher strike, indicating that the trader is taking some money off the table while rolling a bearish position to a lower strike.

Long puts lock in the price where a stock can be sold, so they make money if shares decline. Investors use them to hedge long positions or to speculate on a drop. (See our Education section)

SEDG fell 1.5 percent to $15.80 yesterday and is down 19 percent in the last three months. The Israel-based solar-technology company is expected to release quarterly results after the close on Nov. 3.

Overall option volume in the name was twice its daily average yesterday. Puts outnumbered calls by a bearish 6-to-1 ratio.

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