Sealed Air is drawing downside option activity ahead of its fourth-quarter earnings report on Thursday and two industry conferences later this month.
More than 4,400 March 20 puts have traded in a strong buying pattern for $0.70 to $0.80, according to optionMONSTER's Depth Charge system. The previous open interest at that strike was just 263 contracts, so these are new positions..
SEE is down 1.93 percent to 20.31 in morning trading. This month the maker of Bubble Wrap packaging material broke out of a tight range in place since last August, and it now sits just above its 200-day moving average.
Today's put buying is not tied to any stock trades that we have identified, though it could be a hedge on a previously established long position. It could also be a straight bearish bet. Either way, the puts purchased today would be profitable if SEE drops roughly 5 percent by the time they expire on March 16. (See our Education section)
Total option volume in the name is 6,189 so far today, already more than 4 times its daily average. Only 20 calls have traded at all strikes, a reflection of today's bearish sentiment.
In addition to its quarterly results Thursday morning, Sealed Air is scheduled to present at two industry events, the Credit Suisse Annual Global Paper & Packaging Conference in New York City on Feb. 22 and the Barclays Capital Industrial Select Conference in Miami on Feb. 23.
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