Traders opened bearish positions in InvenSense yesterday for the second session in a row.
optionMONSTER's Depth Charge system shows that 6,763 May 15 puts were bought in one print for the ask price of $1.55 yesterday in volume above the previous open interest, showing that this is a new position. That adds to 5,000 puts bought at the same strike in the previous session, as cited on our InsideOptions Pro service at that time.
Another 4,500 June 15 puts were bought for $1.90 in yesterday's session. Volume was above the open interest in that strike as well.
Long puts lock in the price where the stock can be sold no matter how far it might drop, gaining value in a selloff. The contracts can be purchased either as an outright bearish bet or a hedge on a long position . (See our Education section)
INVN fell 0.85 percent to $15.08 yesterday, near the bottom of a range that has been in place since late January. The company, which makes chips used in motion-detection equipment, is expected to report earnings in late April.
Overall option volume in InvenSense was just shy of 15,000 contracts yesterday, 5 times its daily average for the last month. Total puts outnumbered calls by more than 9 to 1, a reflection of the bearish sentiment.
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