RadioShack has shown signs of life in recent weeks, and one option trader is betting that the bloodletting will end in coming months.
optionMONSTER's tracking systems detected the sale of 1,843 October 2.50 puts within minutes yesterday afternoon, most of them in one large print that went for $0.30. Open interest in the strike at the start of the session was 1,166 contracts, indicating that this is a new position.
RSH is slipped 0.67 percent yesterday, or $0.02, to close at $2.96. The struggling electronics retailer gapped lower after missing earnings estimates on Jan. 25 but have been drifting higher since then.
Yesterday's short puts represent a belief that RSH will be above the $2.50 strike price at expiration on Oct. 19. The trader is also facing the purchase of shares if they are below that level.
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