At least one trader apparently believes that downside potential will be limited for EMC in coming months.
optionMONSTER's tracking programs detected the sale of 2,600 June 23 puts for $0.25 at the same time yesterday. This represents new positioning, as volume was above the strike's open interest of 2,081 contracts.
Short puts lock in a price where investors must buy a stock, while letting them collect premium. Traders use the technique when they like a stock and think the risk of a big drop is limited. (See our Education section.)
EMC rose 0.08 percent to $26.41 yesterday and is up 3 percent in the last three months. The cloud and storage software company reported mixed results on Jan. 27 and is expected to release its next quarterly numbers on April 20.
Overall option volume was about average in EMC yesterday.
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