Sodastream Shares Losing Their Fizz After Large Bearish Put Bet
Shares of Sodastream International Ltd (NASDAQ: SODA) are trading just off the lows of the day following Monday morning's aggressive buyer of August 21 puts. The buyer of the puts paid the offer price, buying nearly 4,000 contracts at prices ranging from 0.90 to 1.35. The big volume compares to open interest of only 12, so the buyer of these puts is establishing a new bearish position.
The stock price at the time of the put purchase was 21.60, and has since fallen by 0.12 to 21.48.
The implied volatility of these puts has risen dramatically on Monday, moving up 10 percent from 49.35 to 55.11. The 21 strike price is 2.23 percent the current stock price, and the stock would have to fall below 20 for the put buyer to be profitable at August expiration after accounting for the premium paid for the puts.
Sodastream is due to report earnings at the end of July. Shares of the company are down 5.08 percent on the day.
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