What's behind surge in EMC puts
Chris McKhann | [email protected]
optionMONSTER systems show that a trader bought 5,000 October 23 puts for the ask price $1.31 against previous open interest of 6,740. At the same time, he or she sold 5,000 October 19 puts for the bid price of $0.26 in volume well above that strike's open interest of 1,690 contracts, clearly a new position.
This could be the work of a trader rolling a short-put position to the lower strike, but it is much more likely that it is a new vertical spread that is looking for EMC to fall below $19 by mid-October. (See our Education section)
EMC finished the day at $23.12, losing 0.73 percent. It was at a 52-week low of $21.45 last month before the company's last earnings report.