Hedges in place on Focus Media
Focus Media is trying to hold its ground, but investors want protection.
optionMONSTER's Depth Charge tracking systems detected the purchase of more than 13,000 June 19 puts for $0.70 to $0.90. Volume was more than 16 times open interest in the strike.
FMCN closed unchanged at $21.46 yesterday. The company, which owns digital advertising screens in mainland China, has reported better-than-expected results for the last three quarters. But the stock has been falling and has lost one-quarter of its value in the last two months as investors shun emerging markets.
Yesterday's put activity followed buying in the shares, which suggests that the contracts were added as protection by investors building a position in the stock. (See our Education section)
FMCN's next earnings report is scheduled for after the bell on Monday, May 28.
Overall option volume was 8 times greater than average in the session, with puts accounting for 90 percent of the total.
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