How one spread is playing Allscripts

Allscripts Healthcare has dropped to a three-year low, but one trader is apparently looking for a floor beneath the stock.

MDRX is down 3.32 percent to $9.02, its lowest level since March 2009. The health-care IT company hit an intraday low of $8.84 earlier in the session. Shares have gapped lower on the last two earnings releases, coming off a 52-week high above $21 on the February report and a huge gap down from $16 to $10 in late April.

More than 11,000 MDRX options have traded, compared with a daily average of fewer than 400 contracts. More than 3,000 December 9 puts have traded in conjunction with 4,000 March 8 puts.

The big blocks of 2,144 March puts were bought for $1.10 and the 2,348 December puts went for $1.25. The volume at each strike was more than open interest.

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— Option Monster

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