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Bears are circling Janus Capital

David Russell (david.russell@optionmonster.com)

Janus Capital is losing customers, and the bears are circling.

optionMONSTER's Depth Charge tracking system detected the purchase of some 10,000 June 12 puts for $1.20. Volume was more than 35 times previous open interest at the strike, indicating that new positions were initiated.

Puts lock in the price where a stock can be sold, letting traders hedge long positions or speculate on a drop. The fact that yesterday's buyer used in-the-money contracts suggests that he or she is using the options in lieu of shorting the mutual-fund operator. (See our Education section)

JNS fell 6.62 percent to $12.13 yesterday after reporting its worst capital outflows since 2004. That news eclipsed strong quarterly profit and revenue numbers. The stock came into the session near its highest levels in more than two years, with a 40 percent gain from the beginning of October.

Overall option volume was 98 times greater than average in the session, according to the Depth Charge. Puts accounted for a bearish 98 percent of the total.

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