Options Action: Staples 'Puts' Fly After Downgrade
Staples is seeing strong put activity Tuesday, ahead of its quarterly earnings report next week.
More than 13,800 puts have changed hands this morning, more than double the daily average of 6,700 contracts in the last 30 days.
More than 9,400 of the December 17.50 puts (search for: PLQXW) traded in the session's first 2.5 hours alone, according to OptionMonster's tracking systems, raising their price by $0.75 to $2.40.
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We've followed unusual action in the world's largest office products company before — and harvested some fat profits based on directional indications from options activity. We also note that Friedman, Billings, Ramsey downgraded SPLS today, cutting its rating from "market perform" to "underperform."
Staples reports its third-quarter earnings results on Dec. 2 before the opening bell.
Staples competes with:
- Office Depot
Jon 'DRJ' Najarian is a professional investor, CNBC contributor, and cofounder of OptionMonster.