There was heavy call selling in Procera Networks yesterday as the shares pushed lower.
optionMONSTER systems showed 6,247 options traded in the company, which has been falling since late 2012. Almost all that volume occurred in the May 12.50 calls, which changed hands more than 5,600 times. Almost all of them priced at the $0.30 bid price.
The calls may be sold naked with an initial bearish bias. They could also be sold against long shares as a covered call, which is bullish only up to the strike. (See our Education section.)
PKT ended the session at $11.08, down 3.23 on the day. It has support at $11 and resistance around $12.50. Two years ago, the shares fetched more than $20 each.
Total option volume was more than 100 times average daily amounts.
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