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July 17, 2013  Wed 9:48 AM CT

DLR: SEE CHART GET CHAIN FIND STRATEGIES
Digital Realty Trust has been rebounding in the last week, but one trader is reaffirming a bearish position on the name.

More than 10,700 DLR options have already changed hands today, compared to a daily average of 1,538 in the last month. Virtually all of this action is in one put trade.

optionMONSTER's Depth Charge system shows that a trader sold 5,000 July 65 puts for $1.29 in volume below the previous open interest of 6,408 contracts. At the same time, he or she bought the same number of August 65 puts for $2.95 against open interest of just 8 contracts at that strike, clearly indicating a new position.

Given that the July expiration comes at the end of Friday's session, this is almost certainly a roll of a long-put position forward in time. The trader is paying a premium of $1.66 to get another month of downside exposure. Because these puts are in the money, they will track the share price closely and are likely making a straightforward bearish bet instead of a protective hedge on a long-stock position. (See our Education section)

DLR is down fractionally to $63.84 this morning. The real-estate investment trust reached $74 in April but fell to $56 last month before bouncing. The stock broke back above its 50-day moving average last Thursday but remains below the 200-day line.
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