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Bears look for more pressure on Mitek

David Russell (david.russell@optionmonster.com)

Mitek Systems got annihilated earlier in the month, and now the bears are back.

optionMONSTER's Depth Charge monitoring system detected the purchase of more than 3,000 June 2.50 puts for $0.30 and $0.35 against open interest of just 124 contracts. They will profit from the stock making another push to the downside in the next five weeks.

MITK fell 3.32 percent to $2.62 yesterday and has lost about three-quarters of its value in the last three months. The maker of imaging software for smart phones rallied more than 1,000 percent between mid-2010 and March 2012, but it has been plunging since.

Earnings were strong earlier it the year, but revenue was less than half of what analysts had expected on May 2. (See researchLAB for more)

Overall option volume in MITK was nearly 7 times greater than average yesterday, according to the Depth Charge. Puts outnumbered calls by 5 to 1.

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