Traders are positioning for Franklin Resources to continue declining well into next year.
optionMONSTER's Depth Charge market scanner shows that 2,100 April 30 puts were purchased for $0.45 to $0.60 on Friday. Volume was well above the strike's open interest of 1,230 contracts, an indication that new money was put to work.
Long puts lock in the price the price where a stock can be sold, so they make money to the downside. Investors use them to hedge long positions or to speculate on a drop. (See our Coaching section)
BEN fell 5.95 percent to $36.18 on Friday and is down 6 percent in the last month. The asset-management firm reported bearish quarterly numbers on Oct. 22 and is expected to announce its next results on Jan. 28.
Overall option volume in the name was 7 times greater than average on Friday, according to the Depth Charge. Total puts outnumbered calls by a bearish 11-to-1 ratio.
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