Masco fell sharply yesterday after disappointing second-quarter results, but one trader apparently believes that the selling has been overdone.
More than 11,000 September 12 puts traded in a strong selling pattern in less than 5 minutes, according to optionMONSTER's tracking systems. Open interest in the strike was just 446 at the beginning of the day, so this is clearly new activity.
The put selling represents a bet that the stock will hold above the $12 strike price through expiration on Sept. 21. The trading pushed overall option volume in the name to nearly 7 times its daily average for the last month.
MAS is down 0.67 percent to $11.95 in early afternoon trading. The manufacturer of home-improvement and building products missed earnings and revenue estimates Monday night, citing higher costs and weakened demand, and gapped down from above $13 the next morning. (See our Education section)
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