Smithfield Foods has been dropping, and the bears are looking for more downside.
optionMONSTER’s Depth Charge monitoring program detected the purchase of 2,500 August 19 puts for $0.75. An equal number of August 21 puts were sold for $1.75, but volume was below open interest.
This suggests that the investor had previously owned the August 21 puts and is rolling the position to the lower strike. He or she collected a credit of $1 in the process and stands to gain more if the meat processor continues to push lower. (See our Education section)
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