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Put seller sees end to slide in Vocus

Chris McKhann (chris.mckhann@optionmonster.com)

Vocus has fallen more than 25 percent this year, but one large trade is betting that any further downside will be limited for the cloud-marketing software company.

More than 11,400 VOCS options changed hands in total on Friday, dwarfing its daily average of just 162 contracts in the last month. All but 10 of those options were in the May 12.50 puts.

optionMONSTER systems show that a trader sold a block of 7,982 for $0.35. The volume was almost 4 times the previous open interest at that strike, so this is clearly a new position.

The put seller is looking for the stock will hold above $12.50 in coming weeks. If it falls below that strike price, the trader will face the obligation to buy 800,000 shares--more than triple Vocus' entire stock volume on Friday. (See our Education section)

VOCS rose 1.52 percent in the session to close the week at $13.32. The stock, which began the year around $18, has been mostly holding support at $13 in the last month but dipped briefly to $12.34 on March 14.

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