CNBC Stock Blog

Expect Further Options Decline For Kodak: Traders

Chris McKhann|writer, OptionMonster

Eastman Kodak is down 60 percent in the last month, and the options are looking for further declines.

The photography icon fell 2.86 percent yesterday to $4.08, its lowest close since August 11. Kodak is still double its March low but well off the nine-month high near $7 that it hit in mid-September. The shares have encountered resistance at that $7-$8 area all the way back to November, which is when shares were last above $8.

show that more than 10,000 January 4 puts changed hands, almost all of them bought for $0.65 at the same second. The volume was more than twice the previous open interest, indicating that this represented new positions being opened.

While this buying clearly shows a bearish bias for Kodak , roughly 200,000 shares traded at the same time. So this position could be a hedged trade that can profit if the stock moves in either direction or if volatility picks up in the name.

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Chris McKhann is an analyst and writer for .