Fusion io (FIO) drops $1.70 to $19.50 on heavy voulme of 2.35 million shares after William Blair downgraded the stock to Market Perform from Outperform. In options action, one investor apparently sold 2,025 Jan 23 puts on the Salt Lake City,UT storage device-maker at $3.35 to buy 2,925 Jan 20 puts for $1.05. Open interest in the Jan 23 puts is 3,113 and the largest in the name. So, today’s action might roll down in strikes after the big drop in the stock. Some of the Jan 23 puts were apparently being opened on Jan 2 for 95 cents per contract. Now, by opening a positon in Jan 20 puts, the activity sems to reflect concerns about additional losses for the stock over the next 10 days. Earnings are expected around Jan 24, probably outside of the January expiration.
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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.