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Bearish put spread targeting MICROS

Chris McKhann (chris.mckhann@optionmonster.com)

Shares of MICROS Systems fell to 52-week lows on Friday, and one trader is looking for further declines.

optionMONSTER systems show that more than 11,000 MCRS options changed hands on Friday, compared to a daily average of 285 contracts. Only 18 of those options were calls, with most of the action in a single put spread.

A trader bought 5,000 March 35 puts for $1 and, at the same time, sold 5,000 March 30 puts for $0.15, both on wide bid/ask spreads. The open interest was 30 and 0 respectively, so this is new positioning. 

The put vertical spread cost the trader $0.85, which would be lost if MCRS is above $35 at expiration in mid-March. The maximum gain of $4.15 would come if shares are below $30 at that time. (See our Education section)

MCRS finished the week at $39.72. It lost 2.96 percent on Friday, its third straight session of losses. Shares the company, which makes IT systems for the health-care industry, were up above $53 in mid-September.

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