Decker Outdoors is down sharply after issuing weak guidance last night, but traders are looking for the bloodletting to end.
optionMONSTER systems detected the sale of 3,359 June 70 puts for the bid price of $5.60 on a wide bid/ask spread. Previous open interest at the strike was just 638 contracts, showing that this is a new position.
The put seller is betting that DECK will hold current levels or move higher. As long as the stock remains above that $70 level through expiration in mid-June, the trader realizes a 7.7 percent return in four months. (See our Education section)
DECK is down 14.36 percent to $72.42 this morning , its lowest level since mid-November. The footwear company, which manufactures Ugg boots, was above $85 yesterday and had posted a 52-week closing high a couple of dollars higher at the start of the year.
More than 21,000 DECK options have changed hands so far this morning, 5 times its daily average for the last month.
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