Radioshack (RSH) is off 10 cents to $6.21 and set to close the first quarter with a loss of 36 percent. The stock suffered a one-day 30 percent skid on January 31 after lowering its fourth quarter profit forecast and has failed to stage any meaningful rally attempts since that time. Today’s options order flow seems to reflect concerns that the stock will fall below the intraday 52-week lows of $6.14 set yesterday and south of $6 per share, as Apr and May 6 puts are the most actives in the electronics retailer today. The flow includes a multi-exchange sweep of 1,133 May 6 puts for 43 cents per contract. 2,644 now traded. Another 1,760 Apr 6 puts changed hands. ISEE data is consistent with opening buyers of both contracts, and levels of implied volatility in Radioshack options moved up 10 percent to 51.
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.