Traders are betting on a floor beneath shares of Rackspace as the stock tries to break its recent downtrend.
RAX is up 2.48 percent to $43.30 in midday trading. The cloud-computing company was trading near $40 a month ago, its lowest levels of 2012. Shares have been trending lower since their 52-week high above $60 in early May.
The August 37 puts top the option activity in the name today as more than 7,000 contracts have traded against open interest of just 223. Almost all those options went for the bid price of $0.75 in all of 2 seconds, optionMONSTER’s systems show.
— Option Monster