Rackspace (RAX) loses $1.90 to $50.46 and options volume on the San Antonio, TX web-based IT systems service provider includes 6,670 puts and 765 calls. 5,000 Jun 50 puts traded on the stock for an average of $2.325 per contract on ISE. It’s an opening buyer, according to ISEE data. 30-day ATM implied vols are moving up 14.5 percent to 45.5, as some investors might be concerned that the stock will fall below a previous support levels just below $50 per share by mid-June. The stock sank 8.4 percent Tuesday after earnings were reported and are down another 4.1 percent since that time.
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.