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Trader gets more bearish on Fusion-IO

Chris McKhann (chris.mckhann@optionmonster.com)

Fusio-IO is facing a bearish option play as the stock continues to tumble today.

optionMONSTER systems show that a trader sold 2,025 January 23 puts for the bid price of $3.35 against previous open interest of more than 3,113 contracts. At the same time he or she bought 2,925 January 20 puts for the ask of $1.05 in volume that was above that strike's open interest of 704.

It appears that the trader is rolling a put position to a lower strike price. This could be a hedge against long shares but is likely an outright bearish position. (See our Education section)

FIO, a provider of data-center technology, is down 9.06 percent to $19.28 today, its lowest level since early August, when shares gapped higher after earnings results. The stock traded above $32 in October and was above $24 just last week.

Nearly 15,000 FIO options have traded so far today, compared with a daily average of 2,400.

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