Titan draws put buying at key level
Someone is worried about a breakdown in Titan International.
optionMONSTER's Depth Charge monitoring program detected the purchase of 5,000 October 7.50 puts for $0.50 and $0.55. There was no open interest when the session began, which indicates that new positions were opened.
Long puts lock in the level where investors can sell shares, so they move inversely to the stock price. They can be used to hedge long positions or to speculate on a potential drop. (See our Education section)
TWI is down 1.38 percent to $8.94 in afternoon trading. The tire and wheel manufacturer is down more than 50 percent in the last year as sales have weakened and short-sellers piled in.
The stock has been trying to hold support at the same $9 level where it peaked in 2009 and bounced in 2010. Some chart watchers may expect an acceleration to the downside if it breaks.
Total option volume tops 5,000 contracts, 22 times its full-session average. Only 2 calls have traded so far.
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