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October 23, 2013  Wed 3:47 AM CT

DOLE: SEE CHART GET CHAIN FIND STRATEGIES
A large put spread is looking for a sharp drop in Dole Food.

Nearly 20,500 DOLE options changed hands yesterday, just topping the name's total open interest and eclipsing the average daily turnover of just 204 contracts.

A trader bought 10,000 December 12 puts for $0.10 and sold the same number of December 10 puts for an average of $0.025,
optionMONSTER Depth Charge systems. There was no open interest at either of those strikes, so this is new positioning.

The trader is spending $0.075 to open this bearish vertical spread, which could make $1.925 for an impressive risk/reward ratio. It is apparently a bet that CEO David Murdock will fail in his bid to take the food company private. But DOLE falls below $10, the trader will face the obligation to buy shares at that level. (See our Education section)

Shares finished the day down a penny at $13.73. It has been trading at this level for the last two months, since gapping up from $10 at that time of the buyout offer in early August.
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