EMC is just pennies away from its 52-week low, but one trader is betting that any further downside will be limited for the cloud-computing company.
optionMONSTER's tracking systems detected the sale of 3,019 July 19 puts at the same second yesterday for $0.15. This is clearly a new position, as the open interest in the strike was just 152 contracts before the session began.
The put seller is looking for EMC to stay above the $19 strike price through expiration in mid-July, a level it has not seen since September 2010. If shares fall below that mark, the trader will face the obligation to buy the stock at an effective price of $18.85 once the credit from the put sale is included. (See our Education section)
EMC declined 1.43 percent yesterday to close at $22.78, just $0.15 above the 52-week low of $22.63 reached last Wednesday. That day saw heavy call buying at the July 23 strike, according to our Heat Seeker scanners.
The company is scheduled to report first-quarter results on April 24.
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