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Bears go after Sony ahead of earnings

Mike Yamamoto (mike.yamamoto@optionmonster.com)

Sony saw bearish option activity yesterday ahead of its earnings report this morning.

optionMONSTER's Depth Charge tracking system detected the purchase of 2,600 April 10 puts, almost all of them going for $0.65. The volume was more than 21 times more than open interest of just 120 contracts at the beginning of the day, clearly indicating fresh buying.

SNE fell 0.93 percent yesterday to close at $11.74, just below its 50-day moving average. The once-mighty electronics maker has fallen steadily since its March peak just above $22 and is less than a dollar from its 52-week low of $10.91.

Our systems did not identify any stock trades tied to the put buying yesterday, but it could be a protective hedge on a long position established earlier. If not, the puts were bought as a straightfoward bearish bet that the stock will fall roughly 20 percent by expiration in mid-April. (See our Education section)

Total option volume in the name was 5.5 times its daily average in the last month. Only 465 calls traded at all strikes, a reflection of the session's bearish sentiment.

The company is scheduled to release its next earnings report today at 5:30 a.m. ET.

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