Coinstar is getting hit by the bears for the second time this week.
On Monday our Depth Charge tracking system detected buying in the July 62.50 puts for $0.35. The stock has pushed lower since then, and those contracts have almost tripled to $1.
Today the activity is shifting forward by one month as investors buy 1,700 August 60 puts for about $1.90 and sell an equal number of August 75 calls for $1. Volume is more than triple open interest at both strikes.
Today's trade is known as a collar strategy . It cost about $0.90 and will make money if the DVD-kiosk operator falls below $60 in the next five weeks. The investor is also obligated to sell shares for $75 if they go above that level, but the stock has never been above $72. (See our Education section)
CSTR is down 3.36 percent to $64.76 this morning but is up more than 40 percent so far this year amid excitement over its purchase of NCR's rivaling business unit. Last month, however, it warned that acquisition-related costs would hurt earnings. Full second-quarter results will be released on July 26.
Overall option volume is almost triple the daily average so far today, according to Depth Charge.
More From optionMONSTER
The flap over Apple’s corporate tax strategy might sound like a snoozer, until you consider who makes up the difference …