Red Hat (RHT) put volume is at its highest levels of the year. The stock is weak, down 82 cents, or 3.4 percent, to $30.30. There is no obvoius news, but trading is clearly defensive in the options market as well. Put volume is running three times greater than call volume. In all, more than 15,000 puts have traded, the most since December 20, 2007. Consequently, total volume is running five times the usual and directional sentiment based on today’s activity is 61 percent bearish.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.