Ruckus Wireless surged Friday on reports that it is partnering with Google, and one trader apparently believes that the Wi-Fi company will hold those gains.
optionMONSTER systems detected the sale of 3,000 June 10 puts for the bid price of $0.40 on Friday. Open interest in the strike was just 566 contracts before the trade appeared, so it is clearly a new position.
The put sale is betting that RKUS will stay above $10 through expiration in mid-June, at which time the $0.40 credit would be booked as profit. But the trader risks having to buy shares if they fall below that strike price. (See our Education section)
RKUS jumped 6.33 percent on Friday to close the week at $10.42 after news reports that the company is working with Google to build a cloud-based Wi-Fi network. Rukus was trading above $15 in early March but hit a 52-week intraday low of $8.65 just last week.
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