LeapFrog (LF) loses 77 cents to $8.38 and some players in the options market expect the stock to leap lower. 7.5 puts on the electornic game-maker are busy today. The top trade is a 2850-lot of Dec 7.5 puts for 85 cents when the market was 75 to 85 cents. Beyond that, the flow has been in smaller lots. 3,555 Dec 7.5 puts now traded. Another 1,000 Mar 7.5 puts changed hands. 30-day ATM vols are leaping 19 percent higher to 88, as the relative weakness in the underlying continues. LF suffered a seven-day 21.3 percent losing skid prior to today. The company unveiled a a reduced price for its LeapPad1 Learning Tablet on Thursday.
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.