What's behind put action in Hospira
Chris McKhann | [email protected]
The provider of injectable drugs and infusion technologies is seeing total option volume of 14,700 contracts so far today, compared to a daily average of 734 over the last month. All of the volume is in a single trade.
A trader sold 7,350 November 30 puts for $0.30, contracts that expire this Friday, according to optionMONSTER's Depth Charge system. The price was less than the listed bid, and the volume was below the previous open interest of more than 8,800. At the same time, the trader bought 7,350 of the December 30 puts for $1.05 against open interest of 306, so this is a new position.
The trade is almost certainly the roll of the long puts forward by a month. The trader is likely looking for further declines and is using the puts with limited risk instead of shorting the stock.
HSP is up fractionally at $29.63 this morning after opening the day at $29.09, its lowest level for 2012. Shares were above $35 in mid-September and at a 52-week high above $38 in late March.