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Pitney Bowes trader doubts bounce

David Russell (david.russell@optionmonster.com)

Pitney Bowes is trying to rebound today, but one trader remains bearish.

optionMONSTER's Depth Charge monitoring program detected the purchase of 5,000 July 6 puts for $0.15 and the sale of an equal number of January 12 puts for $0.85. Volume was below open interest in the January contracts but not the Julys, indicating that an existing position was rolled from one strike to the other.

The investor collected a credit of $0.70. He or she now stands to make money if the struggling postage-meter company continues to fall into next spring. (See our Education section)

PBI is up 2.59 percent to $11.48 in morning trading but has lost more than a third of its value since the start of 2012. The shares have been steadily trending lower since late 2007 as businesses gradually shift away from traditional mail.

The stock is up today after announcing that Marc Lautenbach, a former IBM executive, would become its new chief executive.

Total option volume in the name is already almost quadruple its daily average so far today, according to the Depth Charge. Puts outnumber calls by 40 to 1.

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