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Put seller shows support for AVG

Chris McKhann (chris.mckhann@optionmonster.com)

AVG Technologies is down sharply today, but one trader apparently believes that further losses will be limited.

optionMONSTER systems show that a trader sold 3,810 November 17.50 for the bid price of $0.40 and another 5,7515 for $0.35. This is clearly a new position, as previous open interest in the strike was only 15 contracts.

The put seller is betting that AVG will hold above $17.50 through the next two weeks until expiration. The trader is taking on the risk of having to buy shares if they are below that strike price. (See our Education section)

AVG is down 9.4 percent this morning to $20.63 after falling to $19.55 earlier in the session. These are the lowest levels for the Internet security software company since it briefly gapped down on the last earnings in early August.

The company is scheduled to report third-quarter results on Nov. 7 after the close. More than 14,000 AVG options have changed hands so far today, compared to a daily average of just 553.

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