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Bears see more downside in Helmerich & Payne

David Russell (david.russell@optionmonster.com)

Bears see more downside in Helmerich & Payne

Helmerich & Payne is crumbling after a big run, and now the bears are stepping in.

optionMONSTER's Depth Charge monitoring program detected the purchase of more than 10,000 September 95 puts for $1.50 to $1.90. Volume was more than 60 times previous open interest at the strike, which indicates new positions were initiated.

Puts lock in the price where investors can sell shares in the provider of contract drilling services, letting them hedge long positions or speculate on a drop. They can also generate significant leverage if the shares continue lower. (See our Education section.)

HP fell 1.98 percent to $101.94 yesterday. It more than doubled between late 2012 and last month, but has been showing signs of fatigue recently. It dropped sharply through its 50-day moving average despite reporting strong earnings on July 31, paused around its May support levels and is now heading lower again.

Total option volume was 22 times greater than average in the session, with puts outnumbering calls by a bearish 28-to-1 ratio.

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